The Alliance Pipeline project’s in-service date is expected tobe delayed by about one year, Alliance Pipeline President and CEODennis Cornelson announced yesterday. The massive Canadian gaspipeline project designed to bring 2.3 Bcf/d of supply to theChicago hub from supply basins in British Columbia and Albertalikely won’t start flowing gas until late in 2000 rather than inNovember 1999 because of continued regulatory delays in Canada. Theproject has come under a hail of protests from competitors inongoing hearings in front of Canada’s National Energy Board.

“While the U.S. regulatory process remains on track for receiptof required approvals by summer of 1998, it has become increasinglyapparent that Canadian approvals will not be received in time tostart construction as planned in July 1998. We are pressingforward, however.,” said Cornelson. As a result, Alliance hasrescheduled contractor and supplier commitments to “recognize therealities” of the Canadian regulatory process. “Alliance wants toensure that sufficient resources will be in place to proceed withconstruction when we receive approval,” Cornelson said.

“The final impact on Alliance’s construction plans, schedulesand estimated costs are presently unclear, but it now appears thatwe will start operations sometime in the second half of 2000. Inpreparing our revised plans, we will continue to focus on acost-effective startup at the earliest possible date.” Constructionwill begin soon after regulatory approval.

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