Pembina Pipeline Corporation today announced that Alliance Pipeline Ltd., of which it owns a 50 percent interest, has launched a binding open season for an estimated 400 million cubic feet per day of additional firm service on the Alliance Pipeline system.
Alliance receives natural gas in British Columbia, Alberta and North Dakota and transports 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 term of 15 years. Two open seasons are being held concurrently, one for Canadian receipt and delivery services and one for U.S. transportation service. Parties interested in acquiring capacity from the Canadian receipt points must participate in both open seasons to obtain delivery service to Chicago.
Subject to the results of the open season, this approximately $2 billion project, with an anticipated in-service date in the fourth quarter of 2021, will be backstopped by long term, take-or-pay contracts providing 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 Vice President 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.”
The open season commenced March 28, 2018 and concludes May 30, 2018.