CALGARY, AB (March 13, 2017) – Alliance Pipeline (Alliance) today announced a non-binding request for expressions of interest for additional natural gas transportation service on its system with an anticipated commencement date of November 1, 2020.
In response to high demand for its transportation service to the Chicago market hub, Alliance is assessing the feasibility of adding more compression facilities along its pipeline system to increase throughput capacity. Approximately 500 million standard cubic feet per day (MMscf/d) of new capacity could be made available. Alliance currently transports approximately 1.6 billion standard cubic feet per day (Bscf/d) on average.
The Alliance pipeline system was constructed with the future potential for additional compressor stations on its existing system footprint. The new compression facilities would be built between existing stations along the 3,848-kilometer (2,391-mile) pipeline to safely expand capacity to the Chicago market by approximately 30 percent, without requiring a system outage.
“With existing firm capacity on the Alliance system fully subscribed and interruptible capacity at a premium, customer demand is certainly the driver for exploring a potential capacity expansion”, said Dan Sutherland, Alliance’s Vice President of Commercial Operations. “Market access is a key issue for producers and the Alliance pipeline system is a proven in-place asset providing a reliable connection to the vital US Midwest market.”
Existing shippers are asked to contact Alliance to discuss options for contract term-up of current transportation service that will support the project. Existing and potential shippers interested in this incremental transportation service are asked to contact Alliance by April 7, 2017 and will be provided with a confidentiality agreement to facilitate discussions. If Alliance determines that sufficient interest has been received, and following its feasibility study, Alliance may commence a binding open season as early as the fall of 2017.
For more information, please contact:
Manager, Asset Optimization and Development
Alan Roth, Corporate Communications
About the Alliance Pipeline system:
The Alliance Pipeline system consists of an approximately 3,848-kilometer (2,391-mile) integrated Canadian and U.S. natural gas transmission pipeline system, delivering rich natural gas from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub. The United States portion of the system consists of approximately 1,557 kilometers (967 miles) of infrastructure including the 128-kilometer (80-mile) Tioga Lateral in North Dakota. The Alliance system delivers, on average, about 45.3 million standard cubic metres (or 1.6 billion standard cubic feet) of natural gas per day. More information about the company is available at www.alliancepipeline.com.
Alliance Pipeline Limited Partnership (Alliance Canada) owns the Canadian portion of the Alliance Pipeline system. Alliance Pipeline L.P. (Alliance U.S.A.) owns the U.S. portion of the Alliance Pipeline system. Both Alliance Canada and Alliance U.S.A. are owned 50 percent each by affiliates of Enbridge Income Fund Holdings Inc. (TSX:ENF) and Veresen Inc. (TSX:VSN).
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “may”, “will”, “would”, “could”, “anticipate”, “expect” or other similar words). Forward-looking information in this publication includes statements about Alliance’s proposed capacity expansion, the feasibility, terms and conditions of such expansion, and the ability to achieve project support. Forward-looking statements in this document are intended to provide Alliance security holders and potential investors with information regarding Alliance and its affiliates and related companies. Although all forward-looking statements reflect Alliance’s beliefs and assumptions based on information available at the time the statements were made, these statements are necessarily subject to a variety of risks and uncertainties, including but not limited to market interest, economics, design parameters and regulatory risks. Readers are cautioned not to place undue reliance on this forward-looking information. Alliance undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to Alliance’s Management’s Discussion and Analysis dated February 22, 2017 under Alliance’s profile on SEDAR at http://www.sedar.com/ and other reports filed by Alliance with Canadian securities regulators.