CALGARY, Alberta, Nov. 01, 2017 (GLOBE NEWSWIRE) --
THIS RELEASE IS INTENDED FOR DISTRIBUTION OUTSIDE THE UNITED STATES ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION WITHIN THE UNITED STATES
Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX-V:TWM) is pleased to announce that its Board of Directors has sanctioned a 100 MMcf/day sour, deep-cut Montney gas plant with acid gas injection and 20,000 bbls/day of NGL processing capability, as well as an extensive gathering pipeline network in the Pipestone area near Grande Prairie, Alberta (the "Project"), subject to regulatory approval. The Project is supported by agreements with two anchor tenant customers, which include two five-year, take-or-pay gas handling agreements for 45 MMcf/day with an option for up to 55 MMcf/day, or 55% of the plant capacity. Tidewater is finalizing commitments with several other producers for the remaining plant capacity and due to significant interest is evaluating a phase two expansion to increase sour, deep-cut capacity at its Pipestone Montney processing complex. Tidewater plans to connect the Project to its Pipestone infrastructure, egress hub which is injecting natural gas into the natural gas storage reservoir today. The Project will have a significant egress advantage to other processing plants in the area due to its proposed connectivity to the Alliance and TransCanada natural gas sales networks as well as connectivity to the Tidewater Pipestone infrastructure, egress hub. Tidewater and its customers plan to utilize the three natural gas egress options to provide operational flexibility and enhanced market access prior to TransCanada and Alliance’s next open seasons. The Project is expected to have one of the highest operational onstream times in the area, regardless of regulated pipeline outages, due to storage access.
The Project utilizes acid gas injection and incorporates some of the latest cogeneration technology resulting in what the Corporation believes to be a significantly reduced environmental footprint. The cogeneration technology decreases total fuel consumption and related greenhouse gas emissions by generating both heat and electricity from the same fuel input and may generate significant carbon credits for Tidewater in the future. Further, the facility and majority of the pipeline network will be constructed adjacent to existing sour, natural gas infrastructure, minimizing new disturbances to people and the environment.
Based on the proposed construction schedule, operations are targeted to start up in mid-2019. Phase one, inclusive of the extensive gathering network, is estimated at approximately $210 million where Tidewater’s two anchor tenants have the option to purchase a combined approximate working interest of 35% prior to commissioning the plant. The Project will be funded through a combination of internally generated cash flow and undrawn capacity under the Corporation’s existing credit facility. Tidewater continues to progress on adding large gathering lines throughout the Montney to extend the reach of the Project.
A significant advantage of the Project is the facility’s deep-cut capability which enables Tidewater to recover over 95% of ethane and in excess of 99% of propane, butane and condensate from the liquids-rich Montney gas stream at Pipestone. Tidewater is confident the Project will result in natural gas liquids premiums and improved netbacks for producers and when connected with Tidewater’s Pipestone infrastructure, egress hub, will offer unrestricted egress and optionality while also providing natural gas price improvements.
The Corporation's Business
Tidewater is traded on the TSX Venture Exchange under the symbol “TWM.V”. Tidewater’s business objective is to build a diversified midstream and infrastructure company in the North American natural gas and natural gas liquids (“NGL”) 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.
Advisory Regarding Forward-Looking Statements
In the interest of providing Tidewater's shareholders and potential investors with information regarding Tidewater, including management's assessment of Tidewater's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking statements relating to but not limited to: regulatory approval of the Project; expected consummation of agreements with producers to commit production to the Project; assessment of proposed phase two Project expansion; plans to connect the Project to existing infrastructure; management’s belief regarding egress advantages of the Project; predictions regarding enhanced market access resulting from proposed natural gas egress options; scope of environmental footprint of the Project; projections regarding generation of carbon credits from the Project; expected start-up date of the Project; projected capital costs of the Project; and future development plans related to the Project. These forward-looking statements are based on certain key assumptions regarding our ability to execute on our business plan including with respect to construction of the Project, our operating activities and current industry conditions, the ability of the Corporation to market natural gas liquids to current and new customers; the timely receipt of required regulatory approvals, future natural gas liquids prices and laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Tidewater at the time of preparation, may prove to be incorrect.
Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors including but not limited to: risks related to regulatory approval; the ability of management to execute its business plan; risks inherent in the Corporation’s marketing operations, including credit risk; fluctuations in crude oil, natural gas liquids and natural gas prices; health, safety and environmental risks; uncertainties as to the availability and cost of financing; the possibility that governmental policies or laws may change or governmental approvals may be delayed or withheld; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and other risks and uncertainties described elsewhere in this document or in the Corporation’s other filings with Canadian securities regulatory authorities.
The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Tidewater's current and future operations and such information may not be appropriate for other purposes. There is no representation by Tidewater that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Tidewater does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
TSX Venture Exchange
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Tidewater Midstream & Infrastructure Ltd.
Chairman, President and CEO