SOURCE: Alliance Pipeline Ltd

Alliance

June 03, 2015 18:48 ET

Alliance Pipeline to Close Precedent Agreement Process for Receipt Capacity; Residual Capacity to Be Sold Via Open Season

CALGARY, AB--(Marketwired - June 03, 2015) - Alliance Pipeline announced today that, effective June 26, 2015, it will close the Firm Receipt Service and Firm Full Path Service components of the Precedent Agreement process it has used to recontract its natural gas pipeline system. Alliance will offer limited remaining capacity through an open season.

Alliance is transitioning from a single-service, single-toll, pipeline system to one offering customers a suite of transportation services and contract tenures to the Chicago market. Its new contracts replace 15-year firm service contracts that expire November 30, 2015. Pending regulatory approvals, Alliance is offering capacity on its system for natural gas transportation services effective December 1, 2015.

Alliance's recontracting initiative has been successful, and under its Precedent Agreement process, the company now has signed shipper commitments for minimum three-year terms for its B.C. and Alberta receipt capacity offering of 1.265 billion cubic feet per day (bcf/d). Requests for Firm Delivery Service and Firm Transportation Service (U.S.) will continue to be accepted through the current Precedent Agreement process. The remainder of Alliance's capacity will be marketed as seasonal and interruptible service.

At present, Alliance is only accepting new requests for receipt capacity that are front-loaded minimum five-year contracts. New requests for service will be accepted until June 12, 2015. Alliance's open season for seasonal full path service is anticipated to begin in early July. Further details can be found in the "Doing Business With Us" section of Alliance's website.

"Shipper uptake clearly signals that our new services offering represents a compelling value proposition and has set the stage for Alliance to remain highly utilized beyond 2015," said Terrance Kutryk, President and CEO.

About the Alliance Pipeline system:
The Alliance Pipeline system consists of an approximately 3,719-kilometer (2,311-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 United States portion of the system consists of approximately 1,577 kilometers (980 miles) of infrastructure including the 128-kilometer (80-mile) Tioga Lateral in North Dakota. 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 Holdings Inc. (TSX: ENF) and Veresen Inc. (TSX: VSN).

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