CALGARY, March 28, 2018 /CNW/ – Pembina Pipeline Corporation (“Pembina” or “the Company”) (TSX: PPL; NYSE: PBA) announced today that Alliance Pipeline Ltd. (“Alliance”), of which it owns a 50 percent interest, has commenced a binding open season (“Open Season”) for expansion capacity commitments.
Alliance today announced a binding Open Season for expansion capacity commitments. The Open Season is for an estimated 400 million cubic feet per day of additional firm service, commencing at an anticipated in-service date in the fourth quarter of 2021. The two-month Open Season begins March 28, 2018 and closes May 30, 2018.
Alliance receives natural gas in British Columbia, Alberta and North Dakota and carries it to the Chicago market, delivering approximately 1.6 billion cubic feet of natural gas per day. Pending regulatory approval, Alliance will increase capacity by approximately 25 percent through the addition of compression and other facilities to its system.
The offer is available to both existing and prospective shippers, for a minimum bid term of 15 years. Two Open Seasons are being held concurrently, one for Canadian receipt and delivery services and one for United States (“U.S.”) transportation service. Parties interested in acquiring capacity from the Canadian receipt points must participate in both open seasons to obtain delivery service to Chicago.
Subject to the results of the Open Season, this approximately $2 billion project will be backstopped by long term, take-or-pay contracts that will provide customers with long term, firm receipt service with the certainty of fixed fees.
“The proposed expansion of Alliance Pipeline will increase access to premium markets and improve our service offering to current and potential customers,” said Jason Wiun, Pembina’s Senior Vice President and Chief Operating Officer, Pipelines. “While our extensive discussions regarding the expansion have indicated strong shipper interest, a successful Open Season process is a crucial step towards advancing the project, and providing our customers with additional service and access to the premium Chicago market.”
More information on the binding Open Season is available on Alliance’s website at www.alliancepipeline.com.
About the Alliance Pipeline system:
The Alliance Pipeline system consists of an approximately 3,848-kilometer (2,391-mile) integrated Canadian and U.S. natural gas transmission pipeline system, delivering rich natural gas from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub. The Alliance system delivers, on average, about 45.3 million standard cubic metres (or 1.6 billion standard cubic feet) of natural gas per day. More information about the company is available at www.alliancepipeline.com.
Alliance Pipeline Limited Partnership (Alliance Canada) owns the Canadian portion of the Alliance Pipeline system. Alliance Pipeline L.P. (Alliance U.S.A.) owns the U.S. portion of the Alliance Pipeline system. Both Alliance Canada and Alliance U.S.A. are owned 50 percent each by affiliates of Enbridge Income Fund (TSX:ENF) and Pembina Pipeline Corporation (TSX:PPL).
Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to working with its community and aboriginal neighbours, while providing value for investors in a safe, environmentally responsible manner. This balanced approach to operating ensures the trust Pembina builds among all of its stakeholders is sustainable over the long term. Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. Pembina’s preferred shares also trade on the Toronto stock exchange. For more information, visit www.pembina.com.