CALGARY—With a green light from the Federal Energy Regulatory Commission (FERC), Alliance Pipeline is moving ahead with construction preparations for its Tioga Lateral Pipeline project in North Dakota.
According to the energy firm, the FERC issued its approval late last month for Alliance’s 128-kilometre 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.
“We are very pleased to obtain regulatory approval for this pipeline, which will help address North Dakota’s need for natural gas transportation infrastructure,” Alliance senior vice-president and COO Mike McGonagill said in a statement. “Moving more Williston Basin gas to market will also help reduce flaring and provide direct environmental and economic benefits to North Dakotans.”
The pipeline has been certificated for 106,500-million standard cubic feet (Mcf)/day, according to Alliance, and is underpinned by a contract with Hess Corporation for the transportation 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.
The planned in-service timing for the new pipeline is summer 2013.
The Alliance Pipeline system consists of approximately 3,719-kilometres of integrated Canadian and U.S. high-pressure natural gas transmission pipeline, delivering rich natural gas from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub.