Alliance Pipeline is gauging interest in as much as 500 MMscf/d of new natural gas transportation service on its system, with an anticipated commencement date of Nov. 1, 2020 in mind. This comes in response to high demand for its transportation service to the Chicago market hub, the company said.
The Alliance pipeline system, which currently transports a 1.6 Bscf/d, was constructed to allow for additional compressor stations on its existing system footprint. The new compression facilities would be built between existing stations along the 2,391-mile pipeline to safely expand capacity to the Chicago market by 30%, without requiring 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.”
Existing shippers are asked to contact Alliance to discuss options for contract term-up of current transportation service that will support the project. Existing and potential shippers interested in this incremental transportation service are asked to contact Alliance by April 7 and will be provided with a confidentiality agreement to facilitate discussions.
If Alliance determines sufficient interest has been received, a binding open season could take place as early as the fall of 2017.