Tidewater, TransAlta move forward on NG pipeline
Tidewater Midstream and Infrastructure Ltd. today announced that it and TransAlta Corporation have executed definitive agreements for the construction, operation and tolls payable for the pipeline connecting Tidewater’s Brazeau River Complex to TransAlta’s generating units at Sundance and Keephills.
The Definitive Agreements provide for Tidewater to construct and operate a 20-inch, 120 km natural gas pipeline with initial capacity of 130 MMcf/d which may be expanded to approximately 440 MMcf/d. The pipeline project is supported by a 15 year firm take-or-pay shipping agreement with TransAlta.
As design of the project progressed and to address demand, Tidewater and TransAlta determined to increase maximum capacity of the pipeline to approximately 440 MMcf/d compared to the original design capacity of 340 MMcf/d. As a result of the increased capacity of approximately 30 per cent, the current budget for the project has increased by approximately five -to 10 per cent when compared to the previously announced budget estimate of $150 million.
TransAlta has an option to participate in the pipeline by acquiring up to a 50 per cent ownership interest in the project and it is likely that TransAlta will exercise this option.
The project remains on schedule, with a projected in-service date in Q3/Q4 of 2019 and remains subject to customary conditions and regulatory approval.