Alliance files NEB application for new pipeline services

Alliance Pipeline has filed an application with Canada's National Energy Board (NEB) for regulatory approval of the tolls and tariff provisions the company requires to implement its proposed new services.

The NEB application is a key milestone for Alliance as it negotiates new natural gas transportation agreements and moves to a new business model. Regulatory approval would allow Alliance to offer its customers a menu of new services and competitive tolls replacing 15-year firm service contracts that expire 30 November 2015.

"Our new services offering represents a compelling value proposition for shippers and paves the way to remain highly utilised beyond 2015," said Terrance Kutryk, President and Chief Executive Officer. "Our offering is customer-focused, competitive and enables shippers and Alliance to be responsive to evolving market conditions."

Alliance's new services offering reflects extensive market consultation and includes full-path and segmented receipt and delivery services, a new Canadian trading pool and a revised hydrocarbon dewpoint (HCDP) specification. The company plans to file a regulatory application with the Federal Energy Regulatory Commission in 2015 to revise its US tariff.

Proposed new services

At the Alliance Canadian Shipper Task Force (CSTF) meeting on 10 October 2012, Alliance presented its proposed New Services Framework to existing and prospective shippers. Starting 15 August 2013, Alliance began offering capacity on a first-come, first-served basis through a Precedent Agreement process. Shippers can express interest now for services effective 1 December 2015 under the new framework.

The New Services offering includes: competitive fixed tolls; a range of pipeline services; a new Canadian trading pool; and low cost rich gas transportation to a premium downstream market.

Alliance will seek regulatory approvals for these offerings, as well as to change its Hydrocarbon Dewpoint (HCDP) tariff from the current specification of -10 °C (14 °F) to -5 °C (23 °F). For those shippers looking for certainty to flow above the -5 °C (23 °F) HCDP specification, Alliance will be moving from the existing first-come, first-served temporary operational waiver system to a Firm Rich Gas Service or facilitation of a Shipper-Paired Gas arrangement.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/27052014/alliance_files_neb_application_for_new_pipeline_services_418/