Tidewater Closes Acquisition of Western Pipeline’s North Segment

Tidewater Midstream and Infrastructure Ltd. said it has closed its acquisition of the North Segment of the Western Pipeline System from Pembina Pipeline Corporation and certain of its affiliates for about $0.86 million (CAD 1.2 million).

The Western Pipeline is an approximately 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 supply in Northeastern British Columbia, the company said in a news release.

Tidewater said the integration of the pipeline within its downstream operations and capital program “is expected to deliver meaningful operational efficiencies,” enhancing its ability to optimize its feedstock procurement and cost structure at the PGR.

The price includes the assumption of certain future abandonment and reclamation obligations and liabilities estimated to be approximately $21.6 million (CAD 30.0 million), according to an earlier statement.

As part of the transaction, Tidewater and Pembina entered into an interconnection agreement that will allow Tidewater to continue to access existing crude sources at the terminal located in Taylor, British Columbia for the next 25 years, which is expected to provide PGR with a reliable and cost-effective source of feedstock, according to the release.

“We are excited to announce the agreement to purchase the Western Pipeline. The Transaction provides Tidewater with the opportunity to unlock meaningful cost savings and increased flexibility and control of our day-to-day refining operations at the PGR. We expect that the Transaction will allow us to significantly reduce the cost of feedstock flowing into PGR, which will improve product margins and will play a key role as we continue to focus on optimizing our refining assets,” Tidewater CEO Jeremy Baines said in an earlier statement.

Tidewater Renewables Welcomes Canada’s Biofuels Incentive

Meanwhile, Tidewater Renewables Ltd. said it welcomes the Canadian government’s announcement of a new Biofuels Production Incentive and support for the Canadian biofuels sector.

On Sept. 5, the government said it intends to introduce a new Biofuels Production Incentive, a time-limited production incentive that will provide over $265.9 million (CAD 370 million) over two years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel.

The Biofuels Production Incentive is expected to be provided on a per-liter basis to eligible Canadian producers of biodiesel and renewable diesel and is expected to be available from January 2026 to December 2027 for up to 300 million liters per facility, Tidewater said in a separate statement.

Tidewater’s renewable diesel refinery in Prince George, British Columbia, is expected to produce between 150 million and 170 million liters per year in 2026 and 2027.

“We are grateful for the support from the Government of Canada in levelling the playing field for Canadian renewable fuel producers and assisting Canada’s canola producers, who are critical feedstock suppliers to the Corporation’s renewable diesel facility. Once implemented, the measures announced today are expected to help support a competitive future for the Canadian renewable fuels industry and support the Corporation’s future profitability and liquidity,” Tidewater Renewables CEO Jeremy Baines said.

Tidewater said its operations include downstream facilities, natural gas processing facilities, natural gas liquids infrastructure, pipelines, storage, and various renewable initiatives. Tidewater is a majority shareholder of Tidewater Renewables.

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