Wednesday, October 5, 2011

Tioga Lateral to connect Bakken natural gas production to Alliance Pipeline

CALGARY, Alta. - Veresen Inc. and Enbridge Inc., joint owners of the Alliance Pipeline, on Sept. 27 announced approval by their respective boards of directors that will allow Alliance to proceed with development of a natural gas pipeline lateral and associated facilities to connect production from the Hess Tioga field processing plant in the Bakken region of North Dakota to the Alliance mainline near Sherwood, N.D.

Alliance has executed a precedent agreement with Hess Corp. as an anchor shipper on the Tioga Lateral pipeline, including matching capacity on the Alliance mainline. Aux Sable (owned by Veresen, Enbridge and Williams Partners, L.P.) and Hess have reached a concurrent agreement for the provision of NGL services.

The pipeline is expected to be in service by the third quarter of 2013, subject to regulatory and other required approvals.

The 77-mile Tioga Lateral will facilitate movement of the high-energy, liquids-rich natural gas to natural gas liquid (NGL) processing facilities owned by Aux Sable Liquids Products at the terminus of the Alliance mainline system.

Through the agreement with Hess, Alliance has secured sufficient commitment to proceed with the Tioga Lateral and will hold an open season to solicit additional shipper interest. The pipeline will have an initial design capacity of approximately 120 million cubic feet per day, which can be expanded based on shipper demand.

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