Alliance Pipeline unveils new services and tolls

Source: Alliance Pipeline

Alliance Pipeline ("Alliance") today proposed a new suite of flexible services and competitive toll structures that it presented at a special meeting of shippers and potential customers in Calgary. Over the coming months, Alliance, in consultation with Canadian and U.S. natural gas shipping communities, will seek to finalize its tariff structure and obtain the required regulatory approvals.

The initial 15 year term of Alliance's original transportation agreements ends December 1, 2015. Early next year, Alliance plans to hold an open season for post-2015 contracts.

Unlike most natural gas pipelines, Alliance is a high-pressure pipeline capable of transporting methane and entrained natural gas liquids (NGL) in a dense phase stream. Alliance has a capacity of 1.6 bcf/day and is in proximity to more than 6 bcf/d of natural gas looking for attractive markets. In addition, its design allows producers to forgo costly investments in gas plant processing infrastructure. The Aux Sable Liquid Products plant at the southern end of the Alliance System extracts the methane and fractionates the various NGL components into specification products.

"We are committed to providing the choice and market responsiveness our customers need and delivering transportation services that add value to Alliance", said Terrance Kutryk, Alliance President and CEO. "Our new services model builds on our rich gas advantage and provides shippers with choices that include new zonal services, fixed or index-based tolls, and varying contract lengths".

The Alliance toll structure is designed to offer producers increased flexibility, and cost-effective and certain tolls. Under the proposal, the Canadian pipeline would be split into two receipt zones and one transmission zone. Shippers would pay a fixed toll on the receipt zones and be offered the choice of a fixed transmission zone toll or one that varies with market basis. Shippers may also sell their natural gas out of the receipt zones into a to-be-created Alliance Transfer Pool. Alliance will continue to offer a full path service from Canadian receipt points to Chicago. The U.S. transmission service from the Canada / U.S. border to the terminus of the Alliance system would remain relatively unchanged. Tolls may vary based on volume and length of term.

Alliance is committed to engaging producers, marketers and local distribution companies in finalizing its suite of customer-focused services to meet the demands of the market well into the future.

A description of the proposed services and indicative toll structure is posted on Alliance's website. Confidential consultations with prospective shippers will take place through the Alliance Canadian Shipper Task Force (CSTF). Those seeking additional information should contact Brian Troicuk (email: brian.troicuk@alliancepipeline.com or telephone: 403-517-6354) about becoming a member of the CSTF.


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