Alliance Pipeline offers post-2015 capacity

Alliance Pipeline announced yesterday that it is offering capacity on its system for natural gas transportation services effective from the 1^st December, 2015.

Starting on the 15^th August, 2013, through a precedent agreement process, customers can express interest in December 2015 capacity on the Alliance system. Capacity will be allocated on a first come, first served basis as precedent agreements are executed.

New framework for shipper consultations

"Since last October, when we launched our proposed New Services Framework, Alliance has held over 60 customer consultations. The consultation process helped us further refine our service offerings to better meet shippers' needs in a dynamic marketplace", said Daniel Sutherland, Vice-President, Business Development.

"The precedent agreement process we've put in place responds to the interest expressed in acquiring capacity on our pipeline, post-2015".

Gas transportation offerings

Most of Alliance's original 15 year term transportation agreements end in November 2015, and Alliance's new service offerings will be the basis for recontracting the pipeline.

Alliance's new services framework includes:

• Predictable and competitive fixed tolls.
• A suite of pipeline services to appeal to a diverse range of customers.
• A new Canadian trading pool.
• Low-cost rich gas transportation to premium downstream markets that recognizes the commercial risks in today's natural gas marketplace.

Application to change dewpoint tariff

As part of this new framework, Alliance will also be applying for regulatory approval to change its hydrocarbon dewpoint (HCDP) tariff specification from December 2015. The HCDP change will facilitate an increase in the natural gas liquids (NGL) component of the gas Alliance transports.

"To further establish Alliance as the transporter of choice for rich gas, we are initiating a change in our hydrocarbon dewpoint tariff specification from -10 °C (14 °F) to -5 °C (23 °F)", said Sutherland. "Alliance will be the only longhaul, dense phase natural gas pipeline operating with an HCDP of -5 °C (23 °F) shipping from Canada to premium downstream markets".

The Alliance system

Unlike most natural gas pipelines, the Alliance system is capable of transporting methane and entrained NGL in a dense phase stream. Alliance's rich gas design allows producers to avoid costly investments in gas plant processing infrastructure.

The Aux Sable Liquid Products plant at the Alliance system's southern end near Chicago extracts and fractionates the various NGL components into specific marketable products.

Alliance's average annual capacity is 1.6 billion ft³/d and the system is in proximity to more than 6 billion ft³/d of natural gas supply looking for attractive markets.

Alliance Pipeline Limited Partnership (‘Alliance Canada’) owns the Canadian portion of the Alliance Pipeline system.  Alliance Canada is owned 50% each by affiliates of Enbridge Income Fund Holdings Inc. and Veresen Inc. Alliance Pipeline L.P. (‘Alliance USA’) owns the US portion of the Alliance Pipeline system. Alliance USA is owned 50% each by affiliates of Enbridge Inc. and Veresen Inc.

Edited from various sources by Elizabeth Corner.

Read the article online at: https://www.worldpipelines.com/business-news/16072013/alliance_pipeline_offers_post_2015_natural_gas_transportation_392/