Alliance Pipeline said yesterday it will accept the terms of thecertificate order handed down by FERC last week and, pendingCanadian regulatory approval, plans to begin construction on its1,900-mile pipeline system next May with service by 4Q2000.

“This heralds the dawning of a new day for the natural gaspipeline transportation industry in North America,” said AllianceCEO Dennis Cornelson. “After more than two years of hard work wehave been rewarded with American approval of the Alliance conceptto introduce pipeline competition and choice for western Canadiangas producers and to provide an additional secure source of supplyfor midwestern U.S. and eastern Canadian consumers.”

Cornelson said he’s optimistic Canada’s National Energy Boardwill approved the project later this fall. The system is designedto carry 1.25 Bcf/d of gas from British Columbia to Chicago.Investors in the Alliance Pipeline Limited Partnership includeCoastal Corp. (14.4%), Duke Energy (9.8%), Fort Chicago EnergyPartners (26%), IPL Energy (21.4%), Williams (4.8%), Unocal (9.1%)and Westcoast Energy (14.5%).

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