PIPELINES / Foothills Pipe Lines against Alliance Project
CALGARY, Jan. 7 /CNW/ -- In written evidence filed yesterday with the
National Energy Board, Foothills Pipe Lines took the position that the
proposal from Alliance Pipelines for a 2300 km line to move Canadian gas
through three provinces to Chicago should not be granted a certificate.
''This is the most important pipeline hearing in over 20 years,'' said
Bob Pierce, chairman and CEO of Foothills. ''The National Energy Board's
decision will have a profound impact, not only on the Canadian gas and
pipeline industry, but on the use of natural gas within Canada.''
The Foothills evidence uses evidence submitted by Alliance to illustrate
there is an insufficient supply of gas to justify a new pipeline. The
evidence also shows that Alliance has failed to prove that markets exist for
the proposed increase in capacity.
''The issue of gas supply is a key issue in this hearing'', said Pierce.
''Our evidence shows Alliance has no supply underpinning 42% of their
transportation capacity in the first year, and the shortfall increases in the
following years.''
On the demand side, Foothills evidence indicates that Alliance has not
proven that markets exist in the Midwest for capacity that is additional to
what is already being built over the next two years.
Foothills evidence also identifies shortcomings in Alliance's design with
respect to control of pipeline fractures. Alliance proposes to operate at
significantly higher pressure and richer gas composition than any other
transmission pipeline in North America.
''The industry's fracture control design methods have not been proven at
this combination of pressure and composition. The possibility of propagating
fractures on their system would have serious consequences on both public
safety and the environment,'' said Terry Cameron, senior vice president.
Foothills Pipe Lines Ltd. is a major Canadian natural gas transportation
company owned equally by NOVA Gas International Ltd. and Westcoast Energy Inc.
It's eastern and western legs deliver about one third of all Canadian natural
gas exports to the United States. |
