Alliance Pipeline to auction remaining capacity

OREANDA-NEWS. June 08, 2015. Alliance Pipeline will hold an open season to auction the remaining capacity on its long-haul natural gas pipeline in July, as part of the company's transition away from a single-service, single-toll system.

Alliance's announcement to auction its remaining capacity comes five months before the expiration of its 15-year firm service contracts on 30 November. These contracts were signed as initial commitments to the long-haul pipeline when it was first put into service in the fall of 2000.

The Alliance pipeline is a rich-gas, long-haul line running 2,311 miles from the Montney shale formation in western Canada to Channahon, Illinois. It is the only pipeline carrying co-mingled natural gas and NGLs to the US from Canada, transporting 1.6bn cf/d of natural gas. The line transports more than 135,000 b/d of NGLs.

The company has successfully re-contracted much of the line's capacity under a precedent agreement process, which Alliance began in May 2014. These agreements stipulate a minimum three-year commitment beginning in December this year.

Alliance will close its current firm service contracting programs on 26 June. These programs offered contracts for three, four and five-plus year terms. Capacity for these programs was fully contracted by 17 April.

Alliance will accept new requests for service until 12 June, but only if the shipper is able to sign a minimum five-year front-loaded contract.