Tidewater Midstream & Infrastructure has entered into an agreement with TransAlta for the construction of an inter-Alberta pipeline network.

The project is for a 120km natural gas pipeline from the Brazeau River Complex (BRC) to TransAlta’s generating units at Sundance and Keephills.

The pipeline is expected to cost approximately CA$150m. It will provide initial capacity of 130 MMcf/d by 2020, and have expansion capability to 340 MMcf/d, which represents approximately 50% of TransAlta’s gas requirements at full capacity of the generating units at Sundance and Keephills.

“Construction of the natural gas pipeline supports our strategy of being a low-cost provider of firm, clean and reliable energy,” said Dawn Farrell, president and chief executive officer of TransAlta. “In addition, having greater access to natural gas allows TransAlta to blend natural gas with the coal, prior to fully converting the units, allowing us to take advantage of low natural gas prices and reduce our carbon costs.”

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