Alliance Pipeline is moving ahead with construction preparations for its Tioga Lateral Pipeline project in North Dakota following approval from the Federal Energy Regulatory Commission (FERC).
FERC issued its approval in late September for Alliance’s 79.3 mile, NPS 12 (12 inch diameter) lateral pipeline to connect new natural gas production from the Williston Basin to the Alliance mainline in North Dakota. The natural gas will then be shipped onward to the Chicago market hub. The planned in-service timing for the new pipeline is summer 2013.
“We are very pleased to obtain regulatory approval for this pipeline, which will help address North Dakota’s need for natural gas transportation infrastructure. Moving more Williston Basin gas to market will also help reduce flaring and provide direct environmental and economic benefits to North Dakotans”, said Mike McGonagill, senior vice president and CEO for Alliance Pipeline.
“This is a major milestone that enables Alliance to further align with market and customer needs, while capitalizing on our unique ability to ship liquids rich natural gas since the Alliance pipeline is directly connected to the large-scale NGL extraction and fractionation facility near Chicago owned by Aux Sable Liquid Products.”
The pipeline has been certificated for 106,500 Mcf/day, and is underpinned by a contract with Hess Corporation for transport of 61,500 Mcf/day. The pipeline is expandable, based on shipper demand, and with the project now a go, Alliance will continue talks with interested parties. Shipment of construction materials to approved locations along the pipeline route has begun and construction crews will soon be mobilized. For more information about the project visit: www.alliancepipeline.com.