07:45 AM EDT, 05/06/2025 (MT Newswires) -- Tidewater Midstream and Infrastructure ( TWMIF ) said Tuesday it signed definitive agreements to acquire the north segment of Pembina Pipeline's ( PBA ) Western Pipeline System.

Tidewater will pay $1.2 million and assume about $30 million in future abandonment and reclamation obligations and liabilities.

The Western Pipeline's connection at Taylor, British Columbia, is the key conduit tying the Prince George refinery (PGR), Tidewater said. The company expects the acquisition to yield material run-rate cost improvements and enhance its ability to optimize its feedstock procurement at the refinery.

As part of the transaction, Tidewater and Pembina will enter 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.

This is expected to provide the refinery with a reliable and cost-effective source of feedstock, Tidewater said.

"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," CEO Jeremy Baines said. "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.

The deal is expected to close on or before Sept. 1.