AltaGas acquires assets from Tidewater Midstream

AltaGas has agreed to acquire assets of Tidewater Midstream and Infrastructure for US$650 million.

The assets include the Pipestone Natural Gas Processing Plant Phase I and Phase II expansion project, the adjacent Dimsdale Natural Gas Storage Facility, the Pipestone condensate truck-in/truck-out terminal and the associated gathering pipeline systems required to operate these assets.

The company said the Pipestone transaction strengthens AltaGas’ midstream value chain through an expanded footprint in the Alberta Montney and provides meaningful long-term liquified petroleum gas (LPG) supply for its global exports’ platform.

Tidewater expects to use net proceeds from the transaction for general corporate purposes, including the repayment of amounts on its senior credit facility. Following the transaction, the corporation said it would continue to focus on its remaining midstream, downstream, and renewable fuels assets.

“We believe the transaction unlocks significant value for our shareholders while strengthening our balance sheet to better address opportunities across our diversified portfolio of energy and energy transition infrastructure assets,” said Rob Colcleugh, Interim CEO of Tidewater.