Additions were made to this story on June 3.
Tidewater Midstream & Infrastructure Ltd., Calgary, will pay $180 million (Can.) to unspecified “private company vendors” to purchase their 63% operated working interest in an unnamed 185-MMcfd natural gas processing plant in West Pembina along with related pipelines in central Alberta. The purchase price consists of $170 million cash and $10 million in Tidewater common shares (at $1.35/share).
Tidewater Midstream Pres., Chief Executive Officer, and Chairman Joel A. MacLeod declined Oil & Gas Journal’s request to identify the sellers or the specific gas plant. OGJ’s 2014 data for Canadian gas processing, however, reflect a single plant in Alberta with 185 MMcfd of inlet capacity: Blaze Energy Ltd.’s Brazeau River plant.
Tidewater said the plant has current throughput of about 140 MMcfd and can process sweet and sour natural gas and has “area leading” deep cut gas processing capability. In addition, the plant connects to producers through about 240 miles of gas gathering and NGL takeaway and crude systems.
Blaze Energy’s web site says it conducts most of its operations in the “Brazeau River and West Pembina” areas of Alberta. Its Brazeau River complex possesses large deep cut sour gas capacity and, last year, was “operated and 63% owned” by Blaze, which also operated gas gathering of about 220 miles.
Tidewater said it expects to complete the acquisition by June 30.
Contact Warren R. True at firstname.lastname@example.org.