Tidewater Midstream and Infrastructure Ltd. has announced that it completed commissioning and start-up of the Pipestone Montney sour deep-cut gas processing complex. The Pipestone Gas Plant is designed to process approximately 100 MMcf/day of sour gas and includes an acid gas injection well, salt water disposal well, and pipelines that directly connect to Tidewater's Pipestone Gas Storage Facility. Additionally, the Pipestone Gas Plant is connected to both the Alliance and TC Energy pipeline network.
The Pipestone Gas Plant began processing sour gas on September 15, 2019 and is currently processing approximately 30 MMcf/day of sour gas during this start-up phase. Tidewater expects processing to ramp up to at or near full capacity of 100 MMcf/day by the end of the year. Tidewater received approval from the Alberta Energy Regulator to construct and operate the Pipestone Gas Plant in October, 2018 and began constructing this plant shortly thereafter. The Pipestone Gas Plant was constructed on time and on budget with Tidewater's divestment of the plant's 32MW cogeneration units for cash proceeds of $85 million during the first quarter of 2019. Capacity at the Pipestone Gas Plant is fully contracted with customers including two investment grade counterparties having executed processing agreements.
Toby McKenna, Vice President of Business Development commented that this plant represents a significant milestone for Tidewater. "With the start-up of this strategic asset, Tidewater is well positioned in the Grande Prairie area to offer Montney producers natural gas and liquids processing, egress and storage opportunities." Mr. McKenna added that "we at Tidewater are grateful to all of our employees, contractors and service providers who diligently worked to build this plant in a safe and environmentally responsible manner. We also wish to thank all of our customers for their continued support and confidence in Tidewater."
Q3 Dividend Announcement
Tidewater is pleased to announce that its Board of Directors has declared a dividend for the third quarter 2019 of $0.01 per common share payable on or about October 31, 2019 to shareholders of record on September 30, 2019. The ex-dividend date is September 27, 2019. This dividend is an eligible dividend for the purpose of the Income Tax Act (Canada).