CALGARY, Dec. 6, 2017 /PRNewswire/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA; NYSE: TAC) and Tidewater
Midstream and Infrastructure Ltd. ("Tidewater") (TSX: TWM)
announced today that the two companies have entered into a Letter
of Intent ("LOI") for Tidewater to construct a 120 Kilometre
natural gas pipeline from its Brazeau River Complex to TransAlta's
generating units at Sundance and
Keephills.
The Tidewater Pipeline will facilitate TransAlta's strategy to
convert its coal units at Sundance
and Keephills to natural gas.
Converting the coal units extends the operating life of the assets
and significantly reduces operating costs and emissions.
The pipeline will provide initial capacity of 130 MMcf/d by
2020, and have expansion capability to 340 MMcf/d, which represents
approximately 50% of TransAlta's gas requirements at full
capacity. Under the LOI, TransAlta has the option to invest
up to 50% in the pipeline.
"Construction of the natural gas pipeline supports our strategy
of being a low-cost provider of firm, clean and reliable energy,"
said Dawn Farrell, President and
Chief Executive Officer of TransAlta. "In addition, having greater
access to natural gas allows TransAlta to blend natural gas with
the coal, prior to fully converting the units, allowing us to take
advantage of low natural gas prices and reduce our carbon
costs."
"Tidewater is excited to enter into a long-term arrangement
with TransAlta which is supported by a 15-year take or
pay agreement that provides oil and gas producers throughout
Western Canada with direct
connectivity to a new, large demand source," said Joel MacLeod, President and Chief Executive
Officer of Tidewater. "This agreement with TransAlta enables
Tidewater to transport production direct from the wellhead, through
Tidewater's extensive natural gas processing and storage
infrastructure network, direct to an end market."
About TransAlta Corporation:
TransAlta develops new, and owns and operates a diverse fleet
of electrical power generation assets in Canada, the United
States and Australia with a
focus on long-term shareholder value. We provide municipalities,
medium and large industries, businesses and utility customers
clean, affordable, energy efficient, and reliable power. Today, we
are Canada's largest producer of
wind power and Alberta's largest
producer of hydro-electric power. For over 100 years, TransAlta has
been a responsible operator and a proud community-member where its
employees work and live. TransAlta aligns its corporate goals with
the UN Sustainable Development Goals and we have been recognized by
CDP (formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. We are also proud to have achieved the
Silver level PAR (Progressive Aboriginal Relations) designation by
the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at
transalta.com.
About Tidewater Midstream and Infrastructure
Ltd.
Tidewater is traded on the TSX under the symbol "TWM".
Tidewater's business objective is to build a diversified
midstream and infrastructure company in the North American natural
gas and natural gas liquids ("NGL") space. Its strategy is to
profitably grow and create shareholder value through the
acquisition and development of oil and gas infrastructure.
Tidewater plans to achieve its business objective by providing
customers with a full service, vertically integrated value chain
through the acquisition and development of oil and gas
infrastructure including: gas plants, pipelines, railcars, trucks,
export terminals and storage facilities.
Forward-Looking Statements
This news
release contains forward looking statements within the meaning of
applicable securities laws, including statements regarding: the
construction of a 120 kilometre natural gas pipeline from
Tidewater's Brazeau River Complex to TransAlta's generating
units at Sundance and Keephills; TransAlta's strategy of converting
certain of its coal units to natural gas; and the terms of any
definitive agreement with Tidewater, including that the pipeline
will provide initial capacity of 130 MMcf/d by 2020, have expansion
capability to 340 MMcf/d, and provide TransAlta with an option to
invest up to 50% in the pipeline. These statements are
based on TransAlta's belief and assumptions based on information
available at the time the assumptions were made. These statements
are subject to a number of risks and uncertainties that may cause
actual results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause
such differences include: legislative or regulatory developments,
including as it pertains to the emission standards; the Federal
and/or Provincial legislation impacting the conversion from coal
generation to gas generation; changes in economic and competitive
conditions; ability to secure natural gas supply; any inability to
reach a definitive agreement with Tidewater regarding the
construction of a natural gas pipeline on terms satisfactory to the
Company; changes in the price for natural gas; decreased
demand for energy or capacity; higher costs, expenses and interest
rates; strikes or other labour disruptions; and other risk
factors contained in the Company's annual information form and
management's discussion and analysis. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
reflect TransAlta's expectations only as of the date of this news
release. TransAlta disclaims any intention or obligation to update
or revise these forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
Note: All financial figures are in Canadian dollars unless
otherwise indicated.
SOURCE TransAlta Corporation