SEATTLE (Oil Monster): AltaGas Ltd. announced that it has entered into a definitive agreement with Tidewater Midstream and Infrastructure Ltd. to acquire several key natural gas assets for a total consideration of $650 million.
The agreement covers acquisition of Pipestone phase I processing plant, phase II expansion project and the adjacent Dimsdale natural gas storage facility, as well as the Pipestone condensate truck-in-truck-out terminal and associated gathering pipeline systems, which in turn will help it to boost its position in Alberta's resource-rich Montney region.
The transaction is expected to further strengthen AltaGas’ midstream value chain through an expanded footprint in the Alberta Montney. In addition, it will secure meaningful long-term LPG supplies for its global exports.
The acquisition is subject to a positive final investment decision (FID) for the Pipestone Phase II project between Tidewater and AltaGas. The total consideration is comprised of $325 million in cash and the issuance of approximately 12.5 million AltaGas common shares to Tidewater.
Vern Yu, President and CEO, AltaGas noted that the acquisition is consistent with the company’s long-term strategy. It is expected to deliver stable and growing earnings and cash flows. The company looks forward to advance the final steps required to develop and construct the Pipestone II expansion project, he added.
