Tidewater Midstream and Infrastructure Ltd. stated it has closed its acquisition of the North Section of the Western Pipeline System from Pembina Pipeline Company and sure of its associates for about $0.86 million (CAD 1.2 million).
The Western Pipeline is an roughly 234.3-mile (377-kilometer) crude oil pipeline originating in Taylor, British Columbia, and terminating in Prince George, British Columbia. The pipeline is a key infrastructure asset to Tidewater, connecting the Prince George Refinery (PGR) to crude provide in Northeastern British Columbia, the corporate stated in a information launch.
Tidewater stated the mixing of the pipeline inside its downstream operations and capital program “is predicted to ship significant operational efficiencies,” enhancing its potential to optimize its feedstock procurement and price construction on the PGR.
- Advertisement -
The value contains the belief of sure future abandonment and reclamation obligations and liabilities estimated to be roughly $21.6 million (CAD 30.0 million), in accordance with an earlier assertion.
As a part of the transaction, Tidewater and Pembina entered into an interconnection settlement that can permit Tidewater to proceed to entry current crude sources on the terminal positioned in Taylor, British Columbia for the subsequent 25 years, which is predicted to offer PGR with a dependable and cost-effective supply of feedstock, in accordance with the discharge.
“We’re excited to announce the settlement to buy the Western Pipeline. The Transaction offers Tidewater with the chance to unlock significant price financial savings and elevated flexibility and management of our day-to-day refining operations on the PGR. We count on that the Transaction will permit us to considerably scale back the price of feedstock flowing into PGR, which is able to enhance product margins and can play a key function as we proceed to give attention to optimizing our refining belongings,” Tidewater CEO Jeremy Baines stated in an earlier assertion.
Tidewater Renewables Welcomes Canada’s Biofuels Incentive
In the meantime, Tidewater Renewables Ltd. stated it welcomes the Canadian authorities’s announcement of a brand new Biofuels Manufacturing Incentive and help for the Canadian biofuels sector.
On Sept. 5, the federal government stated it intends to introduce a brand new Biofuels Manufacturing Incentive, a time-limited manufacturing incentive that can present over $265.9 million (CAD 370 million) over two years to help the steadiness and resiliency of home producers of biodiesel and renewable diesel.
The Biofuels Manufacturing Incentive is predicted to be offered on a per-liter foundation to eligible Canadian producers of biodiesel and renewable diesel and is predicted to be out there from January 2026 to December 2027 for as much as 300 million liters per facility, Tidewater stated in a separate assertion.
Tidewater’s renewable diesel refinery in Prince George, British Columbia, is predicted to supply between 150 million and 170 million liters per yr in 2026 and 2027.
“We’re grateful for the help from the Authorities of Canada in levelling the taking part in subject for Canadian renewable gasoline producers and aiding Canada’s canola producers, who’re important feedstock suppliers to the Company’s renewable diesel facility. As soon as applied, the measures introduced right this moment are anticipated to assist help a aggressive future for the Canadian renewable fuels trade and help the Company’s future profitability and liquidity,” Tidewater Renewables CEO Jeremy Baines stated.
Tidewater stated its operations embody downstream services, pure gasoline processing services, pure gasoline liquids infrastructure, pipelines, storage, and varied renewable initiatives. Tidewater is a majority shareholder of Tidewater Renewables.
To contact the writer, e mail rocky.teodoro@rigzone.com
What do you suppose? We’d love to listen to from you, be a part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all vitality professionals to Converse Up about our trade, share information, join with friends and trade insiders and interact in knowledgeable group that can empower your profession in vitality.
