CANADIAN OILPATCH / PIPELINES
Tuesday, November 12, 1996
Alliance wins backing for natural gas pipeline
The Alliance Pipeline Ltd. partnership said yesterday it is forging ahead with plans to build a $3.6-billion natural gas pipeline stretching from British Columbia to the key Chicago market.
Backed by some of the biggest names in the oilpatch, the 18-member Alliance consortium just ended its open season to attract firm shipping commitments of at least 1.25 billion cubic feet per day for the proposed 3,000-kilometre pipeline.
Alliance vice-president Jack Crawford said it will file applications before the U.S. Federal Energy Regulatory Commission by the end of the year, and Canada's National Energy Board by the middle of next year. He said this comes after the company received enough firm shipping commitments to build the pipeline.
"We're on track," Crawford said, adding that Alliance has only crossed one of a number of milestones necessary to bring the project to fruition.
"They expected half of their required volumes to come from their owner base, and the question was whether they would raise the other half," said ScotiaMcLeod Inc. analyst Sam Kanes.
Since many of the producers waited until the last couple of hours before stating their exact intentions, the number of firm commitments won't be announced until the Alliance partners meet on Nov. 22.
Alliance, which hopes to be moving gas by November 1999, met with over 120 potential shippers.
"We think that confidence [in building the pipeline] was vindicated," said Crawford.
When completed, Alliance will compete with TransCanada PipeLines Ltd., and Nova Corp.'s pipeline in Alberta.
The consortium includes producers such as Alberta Energy Co. Ltd., Canadian Occidental Petroleum Ltd., Gulf Canada Resources Ltd., PanCanadian Petroleum Ltd., Petro-Canada, Ranger Oil Ltd., as well as oil pipeline giant IPL Energy Inc. and marketer Unocal Corp.
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