Alliance Pipeline (Alliance) has announced a non-binding request for expressions of interest regarding an additional natural gas transportation service on its system, with an anticipated commencement date of 1 November 2020.
In response to high demand for its transportation service to Chicago, Alliance is assessing the feasibility of adding more compression facilities along its pipeline system to increase the throughput capacity of the system.
While Alliance currently transports approximately 1.6 billion ft3/d on average, approximately 500 million ft3/d of new capacity could be made available.
The Alliance pipeline system was constructed with the potential for additional compressor stations on its existing system. The new compression facilities would be built between existing stations along the 3848 km (2391 mile) pipeline to safely extend its capacity to the Chicago market by approximately 30% without the need for 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."
Alliance has asked existing shippers to contact the company by 7 April and discuss options for contract term up of current transportation service that will support the project. If the company determines that sufficient interest has been received, and following its feasibility study, Alliance may commence a binding open season as early as autumn 2017.
Read the article online at: https://www.worldpipelines.com/business-news/14032017/alliance-pipeline-interested-in-new-market-hub/