Alliance $3 Billion Pipeline in Full Construction Mode
Just in case there were any doubters still out there, Alliance
Pipeline says it now has nine of 10 mainline construction crews in
the field installing the $3 billion pipeline system. The crews
started construction on two spreads in North Dakota, one in
Minnesota, two in Iowa, one in Illinois and two in Saskatchewan. A
Third crew is starting in Saskatchewan this week.
"The Alliance Pipeline system -- which includes the Aux Sable
natural gas liquids extraction and fractionation facility -- will
provide increased access to North American markets for western
Canadian natural gas resources," said Alliance CEO Dennis
Over the next 400 days Alliance plans to install more than 2,300
miles of steel pipe weighing over 1.2 million tons. The system will
be powered by 14 mainline compressor stations totaling more than
550,000 horsepower. The related $365 million Aux Sable Liquid
Products extraction and fractionation facilities will be in
Channahon, IL. The system is to be in service Oct. 1, 2000.
Seven of the 14 mainline compressor station sites have started
construction; all but one of the remainder will be under
construction by the end of June.
Alliance is designed to initially offer 1.325 Bcf/d of firm
delivery service from the gas producing areas of northeastern
British Columbia and northwestern Alberta to markets in the
midwestern United States and eastern Canada. It consists of three
significant, integrated components:
Investors in Alliance and Aux Sable Liquid Products LP include
affiliates of Duke Energy, 9.8%; Enbridge Inc., 21.4%; Fort Chicago
Energy Partners LP, 26.0%; The Coastal Corp., 14.4%; The Williams
Companies, 4.8%; and Westcoast Energy Inc., 23.6%.
The Alberta-to-Chicago toll on Alliance will be a 93 cent/Mcf
demand charge and an energy toll of 81 cents/MMBtu, assuming 1,070
But gas and including fuel and a 16% authorized overrun service
Joe Fisher, Houston
©Copyright 1999 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.