Alliance offering producers
a compelling value proposition
Alliance Pipeline disagrees with an opinion presented
at a recent industry conference that a few business reporters have picked up
on. It’s an opinion not shared by most other industry and financial analysts,
who see Alliance recontracting its capacity and thriving as it moves forward
with its fixed, predictable toll and new services offerings in 2015. Alliance is full and continues to deliver about 1.6 billion cubic feet per day of
natural gas to the Chicago market hub as it has done since 2000.
Our predictable fixed toll and new services for 2015
and beyond prevent the kind of toll escalation suggested by the conference
presenter, who based his remarks on the standard cost of service tolling
methodology. In fact, Alliance is offering rich gas producers a compelling
value proposition, connecting new facilities and advancing its recontracting
The most recent examples are Aux Sable’s long-term Rich
Gas Premium agreements and the numerous new receipt point interconnections
we’ve completed in the last two years – and the new interconnections on the
books for 2014. All of these developments mean significant new volume
commitments for the Alliance pipeline.
In addition, production along Alliance’s corridor in
both Canada and the US has grown dramatically in recent years, including
liquids-rich plays such as the Montney, Duvernay and Bakken. This includes
Prairie Rose contract capacity doubling in the last few years, and Alliance’s
new Tioga Lateral pipeline being brought into service.
Alliance’s recontracting initiative for 2015 and
beyond is on track.