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TransAlta and Tidewater selling Pioneer Pipeline to Atco instead of TC Energy

A woman walks towards the entrance of the TransAlta headquarters building in Calgary, on Tuesday, April 29, 2014. THE CANADIAN PRESS/Larry MacDougal

TransAlta Corp. and its partner, Tidewater Midstream and Infrastructure Ltd. have signed a new deal to sell the Pioneer Pipeline to Atco Gas and Pipelines Ltd. for $255 million, replacing an earlier agreement to sell it to a subsidiary of TC Energy Corp. for the same price.

Atco acquired the right to purchase the Pioneer Pipeline through an option agreement with TC Energy’s Nova Gas Transmission Ltd. (NGTL)

The Pioneer Pipeline includes 131 kilometres of operating pipeline in Alberta. It runs from west of Drayton Valley to west of Edmonton.

Read more: TransAlta and Tidewater sell Pioneer Pipeline to TC Energy for $255 million

The company says the pipeline will be integrated into NGTL’s and Atco’s Alberta natural gas transmission systems.

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As part of the sale, TransAlta has entered into additional long-term gas transportation agreements with NGTL.

TransAlta owns and operates electrical power generation assets in Canada, the United States and Australia.

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