Pioneer Pipeline Commissioning
Tidewater is pleased to announce that the Tidewater operated Pioneer Pipeline, connecting Tidewater’s Brazeau River Complex (“BRC“) gas plant to TransAlta’s generating units at Keephills and Sundance, transported first gas in late May 2019, approximately four months ahead of schedule. The Pioneer Pipeline is currently flowing approximately 50 MMcf/day of natural gas during this start-up phase where initial flows may fluctuate depending on market conditions. Throughput of approximately 130 MMcf/day of natural gas will commence flowing through the Pioneer Pipeline November 1, 2019. Tidewater and TransAlta each own a 50% interest in the Pioneer Pipeline which is backstopped by a 15-year take-or-pay agreement from TransAlta at market rate tolls.
Pipestone Gas Storage Facility
During the first quarter of 2019, Tidewater expanded its gas storage operations at Pipestone (the “Pipestone Gas Storage Facility“) and completed a 24km, 30-inch natural gas pipeline (“Pipestone Pipeline“) connecting the facility to both mainline gas systems, Alliance and TCPL. The Pipestone Pipeline allows for significant future optionality and egress at the Pipestone Gas Storage Facility and Pipestone Gas Plant. The Pipestone Gas Storage Facility is fully contracted on a take-or-pay basis with investment-grade counterparties over an average six-year contract term. Continued capital improvements to the facility during 2019, along with the completed 30-inch pipeline, will significantly increase future contracting capacity at the storage facility. The Pipestone Gas Storage Facility also achieved record injection rates in the second quarter of 2019, exceeding expectations, and further enhancing future contracting capability at the facility.
Q2 dividend announcement
Tidewater is pleased to announce that its Board of Directors has declared a dividend for the second quarter 2019 of $0.01 per common share payable on or about July 31, 2019 to shareholders of record on June 28, 2019. The ex-dividend date is June 27, 2019. This dividend is an eligible dividend for the purpose of the Income Tax Act (Canada).
Tidewater is traded on the TSX under the symbol “TWM”. Tidewater’s business objective is to build a diversified midstream and infrastructure company in the North American natural gas, natural gas liquids (“NGL“) and crude oil space. Its strategy is to profitably grow and create shareholder value through the acquisition and development of oil and gas infrastructure. Tidewater plans to achieve its business objective by providing customers with a full service, vertically integrated value chain through the acquisition and development of oil and gas infrastructure including: gas plants, pipelines, railcars, trucks, export terminals and storage facilities.