Pecan North Dakota to contract with Alliance for a new transportation
CALGARY, Oct. 30 /CNW/ - The Federal Energy Regulatory Commission (FERC)
has approved a revision to the Alliance Pipeline L.P. (Alliance) tariff which
allows Alliance to waive a gas quality specification on a first come, first
served basis. This waiver will enable Pecan Pipeline (North Dakota), Inc.
(Pecan North Dakota), a wholly owned subsidiary of EOG Resources, Inc. (EOG),
to flow dense phase rich gas outside the liquefiable hydrocarbon specification
currently contained in Alliance's FERC Gas Tariff. The Pecan North Dakota
natural gas receipts will not have an operational impact on the Alliance
system as this natural gas will be blended with much larger quantities
entering from Canada, and the combined gas stream delivered to the Chicago
market will remain within Alliance's FERC Tariff gas quality specifications.
"The FERC's decision shows a strong commitment to swiftly and effectively
develop North Dakota's natural gas resources by utilizing existing
infrastructure," said Murray Birch, president and chief executive officer,
Alliance Pipeline. "We are very pleased, and appreciative of, the support we
received for this application."
"Pecan North Dakota's planned Prairie Rose Pipeline is indicative of
EOG's commitment to the development of the Bakken oil play in the region. We
appreciate the support of the FERC, the State of North Dakota and other
entities in helping to advance this important project," said Ray L. Ingle,
president, Pecan North Dakota.
The location and design of the Alliance system is uniquely advantageous
for North Dakota natural gas producers: the Alliance system runs through the
middle of the Williston Basin and can also transport natural gas liquids
thereby reducing the need for producers to build plants to process the gas
before transporting to market. Additional unsubscribed capacity is available
on the Alliance system in the United States.
The Pecan North Dakota Transportation Agreement has an initial term of
10-years with options for renewal. The new interconnection near Towner, North
Dakota, is scheduled to be on-line in mid 2009.
For more information, visit www.alliance-pipeline.com
About Alliance Pipeline:
Alliance Pipeline L.P. ("Alliance U.S.A.") owns the U.S. portion of the
Alliance Pipeline system. Alliance U.S.A. is owned 50 percent each by
affiliates of Enbridge Inc. (TSX:ENB)(NYSE: ENB) and Fort Chicago Energy
Partners L.P. (TSX:FCE.UN).
Alliance Pipeline Limited Partnership ("Alliance Canada") owns the
Canadian portion of the Alliance Pipeline system. Alliance Canada is owned 50
percent each by affiliates of Enbridge Income Fund (TSX:ENF.UN) and Fort
Chicago Energy Partners L.P. (TSX:FCE.UN).
Forward Looking Information: Certain information contained in this news
release constitutes forward-looking statements. The words "anticipate",
"expects" and "expected to" and similar expressions are intended to identify
such forward-looking statements. Although Alliance Pipeline believes that
these statements are based on information and assumptions which are current,
reasonable and complete, these statements are necessarily subject to a variety
of risks and uncertainties including, but not limited to, future operating
performance, regulation, economic conditions and fundamentals affecting the
oil and gas producing and marketing industries. Should one or more of these
risks or uncertainties materialize or fail to materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those expected.
For further information:
For further information: Brian Troicuk, Manager, Regulatory Affairs,
(403) 517-6354, email@example.com,