Alliance Receives Approval for Bakken Natural Gas Pipeline
10/01/2012| 09:48am US/Eastern
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Alliance Pipeline received regulatory approval for a proposed pipeline that would deliver natural gas from the Bakken Shale formation to the Chicago market, the company said Monday.
The 106.5 million-cubic-feet-a-day Tioga pipeline should be running by mid-2013, Alliance said. Although new drilling technology has greatly boosted hydrocarbon production in the Bakken, in North Dakota's Williston Basin, a lack of pipelines has led oil producers to resort to rail cars to move product and natural gas producers have had to burn excess product.
"Moving more Williston Basin gas to market will also help reduce flaring and provide direct environmental and economic benefits to North Dakotans," said Mike McGonagill, Senior Vice President & Chief Operating Officer for Alliance Pipeline. Alliance Pipeline LP is owned by Canadian pipeline companies Enbridge Inc. and Veresen Inc., according to the Alliance Web site. Its Canadian limited partnership is owned by Veresen and Enbridge Income Fund Holdings Inc.
Hess Corp., one of the major oil companies in the Bakken, has contracted 61.5 million cubic feet a day of the pipeline, Alliance said. The pipeline's capacity can be expanded further, the company said.
Write to Ben Lefebvre at ben.lefebvre@dowjones.com
Corrections & Amplifications
This item was corrected 12:04 p.m. EDT (1604 GMT) because it misstated the size of the Tioga pipeline in the second paragraph and the size of Hess Corp.'s contracted capacity in the fourth paragraph as 106,500 million cubic feet a day, instead of 106.5 million. Hess has contracted 61.5 million cubic feet a day of the pipeline, not 61,500 million.
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