Alliance and Questar announce open season for a natural gas pipeline from U.S. Rockies to Ventura and Chicago gas trading hubs
CALGARY, May 2 /PRNewswire-FirstCall/ -- Alliance Pipeline Inc. (Alliance) and Questar Overthrust Pipeline Company (Questar) will conduct a binding open season for the proposed Rockies Alliance Pipeline (RAP), a jointly owned interstate natural gas transportation system from the Rocky Mountain Region to the Ventura and Chicago trading hubs, beginning May 12 and ending June 16, 2008.
Based on discussions with prospective shippers following the project announcement on March 25, 2008, the sponsors have revised the route to better meet market needs. The new route connects fast-growing Rocky Mountain producing areas directly to the Ventura, Iowa, and Chicago, Ill., trading hubs. Capacity for RAP is 1.2 billion cubic feet per day (bcf/d) with expansion capability to 1.8 bcf/d. By capitalizing on both Questar's and Alliance's existing systems, RAP will allow shippers to transport growing natural gas production volumes from the Greater Green River, Piceance and Powder River basins to growing mid-western and eastern markets. The project will require approximately 900 miles (1450 kilometers) of new 42-inch-diameter pipeline construction, extending east from Wamsutter, Wyo., to the Ventura, Iowa, area where it will connect to Alliance Pipeline and Northern Natural Gas. Questar's Overthrust Pipeline can be expanded at low cost to connect multiple receipt points between Opal and Wamsutter. In a separate open season, Overthrust Pipeline is proposing to add up to 1.0 bcf/d incremental capacity from Opal to Wamsutter and construct the proposed new White River Lateral from the White River Hub in the Piceance Basin to Wamsutter. With minor modifications, Alliance can enhance downstream capacity on its system which connects to Guardian, Vector, Peoples, Nicor, ANR, NGPL and Midwestern.
"Alliance has always worked closely with shippers to determine the best ways to meet market needs. RAP provides the shortest and most cost effective proposal to move natural gas from the Rockies to serve the growing U.S. markets in the Midwest and Northeast," says Murray Birch, Alliance president and chief executive officer. "Questar's Overthrust Pipeline is easily expandable and provides unmatched receipt and delivery-point flexibility between Opal and Wamsutter. It is ideally positioned in the Rockies to become the upstream delivery pipeline to RAP," says Allan Bradley, Questar Pipeline president and chief executive officer. Subject to obtaining shipper commitment for this system and regulatory approvals, the pipeline is expected to be placed into service as early as third quarter 2011. To view the proposed route map click here. http://www.alliance-pipeline.com/contentfiles/115____RAP_Map.pdf
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). About Questar Pipeline: Questar Pipeline Company is a subsidiary of Questar Corp. Questar Corp. (NYSE:STR) is a natural gas-focused energy company with an enterprise value over $10 billion. Questar finds, develops, produces, gathers, processes, transports, stores and distributes natural gas. 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 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.
CONTACT: Alliance Pipeline: Eric Besseling, Director, Business
2008-05-02 18:45:09 0351853 PRNEWSWIRE
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