Alliance Pipeline 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 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 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, the company may commence a binding open season as early as the fall of 2017.