“Proposed expansion of Alliance Pipeline will increase access to premium markets and improve our service offering to current and potential customers.”
Pembina Pipeline Corporation announced that Alliance Pipeline Ltd., of which it owns a 50 percent interest, has commenced a binding open season for expansion capacity commitments, according to a press release.
Alliance receives natural gas in British Columbia, Alberta and North Dakota and carries it to the Chicago market, delivering approximately 1.6 billion cubic feet of natural gas per day. Pending regulatory approval, Alliance will increase capacity by approximately 25 percent through the addition of compression and other facilities to its system.
The offer is available to both existing and prospective shippers, for a minimum bid term of 15 years. Two Open Seasons are being held concurrently, one for Canadian receipt and delivery services and one for United States transportation service.
Parties interested in acquiring capacity from the Canadian receipt points must participate in both open seasons to obtain delivery service to Chicago, the company said.
Subject to the results of the Open Season, this approximately $2 billion project will be backstopped by long term, take-or-pay contracts that will provide customers with long term, firm receipt service with the certainty of fixed fees.
“The proposed expansion of Alliance Pipeline will increase access to premium markets and improve our service offering to current and potential customers,” said Jason Wiun, Pembina’s Senior VP and Chief Operating Officer, Pipelines.
“While our extensive discussions regarding the expansion have indicated strong shipper interest, a successful Open Season process is a crucial step towards advancing the project, and providing our customers with additional service and access to the premium Chicago market.”
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