Tidewater Midstream and Infrastructure has acquired the remaining 37% working interest in the Brazeau River Complex (BRC) gas plant, as well as the remaining nearly 60% working interest in 105km of gas gathering pipelines directly connected to the BRC.

Additionally, the deal includes remaining working interests for 100% ownership in the earlier announced three proven natural gas storage reservoirs that are also directly connected to the BRC for a purchase price of $30m in cash.

The acquisition offers increased access to industry activity, further bolsters the value of the BRC and the recently announced fractionation facility, and is in line with Tidewater's strategy to acquire, optimise and integrate infrastructure throughout the NGL and natural gas value chain while offering egress options for producers.

Tidewater Midstream and Infrastructure claimed that multiple new and existing customers have showed their interest to access BRC through acquired pipelines where drilling activity is underway.

"The company is currently negotiating with various investment grade counterparties to contract the storage assets."

The acquired storage assets will provide substantial optionality to the company after Phase I of Tidewater's dual-connected Alliance and TransCanada infrastructure starts functioning from the first quarter of 2017. 

The company is currently negotiating with various investment grade counterparties to contract the storage assets.

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Tidewater expects that the acquisition will generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of nearly $4.5m annually, including all related operational synergies.

The acquisition was devised in a way that entering the acquisition agreement and close were sequential, therefore the acquisition is now closed.

Tidewater is also purchasing minor mineral rights within the BRC area, which were owned by the vendor. The company plans to divest the mineral rights in exchange for volume commitments at the BRC and / or its fractionation facility.