Working in conjunction with Aux Sable Liquid Products, Alliance Pipeline continues to be one of the cornerstones of our business. Operating together, Alliance and Aux Sable form a high value, total energy delivery system that is unique from any other long-haul natural gas transportation system in North America.
Alliance Pipeline, of which we own 50 percent, operates a 3,000 km, 1.325 Bcf/d (firm service), high-pressure natural gas pipeline. This system connects western Canada’s long-life natural gas reserves to large energy markets in the midwestern United States. Alliance transports a “rich” natural gas stream, primarily consisting of methane, but also including ethane, propane, butane and condensate, collectively referred to as “natural gas liquids” or “NGLs”. Transporting NGLs within the gas stream provides for a higher energy value, or heat content, which reduces the volumetric transportation cost.
As an integral part of this energy delivery system, Aux Sable operates a world-scale NGLs extraction and fractionation facility located close to the terminus of the Alliance pipeline, near Chicago, Illinois. Aux Sable has the exclusive right to extract and sell the NGLs transported by Alliance. Once extracted, the component NGLs products are sold to petrochemical, refinery, specialty chemical and propane heating markets throughout the midwestern United States.
Alliance’s significant gas gathering footprint in northwestern Alberta and northeastern British Columbia allows Alliance and Aux Sable to benefit from the region’s traditional gas supply sources. Western Canada’s emerging Montney shale gas play houses a potentially large new source of supply. Another important new supply source, closer to the U.S. market and within close proximity to Alliance, is the NGLs-rich Bakken play that extends across southern Saskatchewan and North Dakota.
Alliance and Aux Sable proactively seek to attract rich gas supplies into Alliance through the construction of new pipeline laterals, gas processing and inducement services and a variety of gas transportation tolling mechanisms.
Tioga Lateral Pipeline
Alliance has completed construction and commissioned the 127-km (80-mile) Tioga Lateral Pipeline and associated facilities in North Dakota. The pipeline extends from an existing Hess Corporation gas processing facility and interconnects with the Alliance mainline, facilitating the onward shipment of natural gas to Aux Sable’s Channahon facility. The 12-inch diameter pipeline provides the transportation infrastructure to move 126 million cubic feet per day of rich natural gas. Hess is the anchor shipper for the pipeline.
The Tioga Lateral Pipeline will transport natural gas being produced in association with oil production, which is gas that might otherwise be flared or vented to the atmosphere, due to a lack of infrastructure. This pipeline will ensure that this important resource — the most environmentally-friendly of the hydrocarbon energies — can be transported to homes and businesses where it is needed.