CALGARY, March 12, 2020 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC)
announced today that the Company, with its partner Tidewater
Midstream & Infrastructure Ltd. ("Tidewater"), has entered into
a Letter of Intent to sell the Pioneer Pipeline to NOVA Gas
Transmission Ltd. ("NGTL"), a wholly-owned subsidiary of TC Energy,
for a purchase price of CDN $255
million. As part of the transaction, NGTL intends to
integrate the Pioneer Pipeline into its natural gas pipeline
infrastructure in Alberta.
The benefits of the transaction to TransAlta include:
- Access to NGTL's highly liquid natural gas network and gas
trading hub;
- Additional reliability and flexibility of having two pipelines
delivering natural gas to the Company's power stations;
- Access to a broad and diversified group of gas producers and
resource basins; and
- Cash proceeds that can be used to fund the Company's natural
gas conversion program, or for other purposes.
As part of the transaction, TransAlta will enter into long-term
delivery transportation agreements with NGTL, bringing the total of
new and existing natural gas pipeline transportation service to 400
TJ/day by 2023. TransAlta's current commitments, including
the 139 TJ/day with Tidewater, will remain in place until the
closing of the transaction.
"Tidewater has been an exceptional partner that was able to
build the Pioneer Pipeline well ahead of schedule, allowing us to
significantly reduce our carbon emissions and costs," said
Dawn Farrell, President and Chief
Executive Officer of the Company. "Going forward, we are excited to
work with TC Energy to meet our transportation requirements as we
continue to execute our clean energy strategy, which will support
our goals as a leader in clean electricity generation."
The transaction is subject to entering into a Purchase and Sale
Agreement, and customary regulatory approvals.
About TransAlta:
TransAlta owns, operates
and develops a diverse fleet of electrical power generation assets
in Canada, the United States and Australia with a focus on long-term
shareholder value. TransAlta provides municipalities, medium and
large industries, businesses and utility customers with clean,
affordable, energy efficient and reliable power. Today, TransAlta
is one of Canada's largest
producers of wind power and Alberta's largest producer of hydroelectric
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 has been recognized by CDP (formerly Climate
Disclosure Project) as an industry leader on Climate Change
Management. TransAlta is 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 its web site at
transalta.com.
Cautionary Statement Regarding Forward Looking
Information
This news release contains forward looking statements within
the meaning of applicable securities laws. The use of
any of the words "expect", "anticipate", "continue", "estimate",
"may", "will", "project", "should", "propose", "plans", "intends"
and similar expressions are intended to identify forward looking
information or statements. More particularly, and without
limitation, this news release contains forward looking statements
and information relating to the Pioneer
Pipeline; sale of the Pioneer Pipeline to NGTL;
regulatory approvals; execution of the definitive agreements;
NGTL's intention to integrate the Pioneer Pipeline into its natural
gas pipeline infrastructure in Alberta; the potential benefits of the
transaction; and estimated natural gas pipeline transportation
service with NGTL. These forward looking statements
are based on a number of assumptions considered by the Company to
be reasonable as of the date of this news release, including, but
not limited to, the following: no significant changes to applicable
laws and regulations, including any tax and regulatory changes; no
significant changes to our relationship with Tidewater; and
assumptions regarding our current strategy and priorities,
including as it pertains to our natural gas conversion
program and the clean energy strategy. The forward looking
statements are subject to a number of risks and uncertainties that
may cause actual performance, events or results to differ
materially from those contemplated by the forward looking
statements, which include: disruptions in the source
of fuels, including natural gas required for the natural gas
conversions and repowering strategies; changes in economic and
market conditions; changes in tax, environmental, regulatory and
other laws and regulations; and other risks and uncertainties
discussed in the Company's materials filed with the Canadian
securities regulatory authorities from time to time and as also set
forth in the Company's Management's Discussion and Analysis dated
December 31, 2019, filed under the
Company's profile with the Canadian securities regulators on
www.sedar.com. Readers are cautioned not to place undue reliance on
this forward looking information, which is given as of the date it
is expressed in this news release. The Company undertakes no
obligation to update or revise any forward looking information
except as required by law.
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SOURCE TransAlta Corporation