TC Energy buys Pioneer Pipeline for $255 million

TransAlta Corp. and its partner Tidewater Midstream and Infrastructure Ltd. have signed a deal to sell the Pioneer Pipeline to a subsidiary of TC Energy Corp. for $255 million.

The Pioneer Pipeline includes 131 kilometres of operating pipeline in Alberta.

It runs from west of Drayton Valley to west of Edmonton.

TC Energy says it plans to integrate the pipeline into its Nova Gas Transmission Ltd. (NGTL) system.

As part of the deal, TransAlta will enter into long-term delivery transportation agreements with NGTL.

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

This report by The Canadian Press was first published March 12, 2020.

Companies in this story: (TSX:TA, TSX:TRP)