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New U.S. outlet proposed for Canada gas
Gary Park
A trio of investors plans to improve pipeline connections between Canadian natural gas supplies and hungry consumers in the U.S. Northeast.
Alliance Pipeline, which operates a high-pressure line from northeastern British Columbia and Chicago, has signed a memorandum of understanding with Duke Energy and NJR Pipeline to build what it calls the Lebanon Connector — 125 to 170 miles to reach what it calls “higher value markets.”
An exact route will be based on the response from potential shippers to a non-binding open season scheduled for July 28-Aug. 31. One option a Lebanon link One option is to link Alliance’s existing pipeline with a storage hub in Lebanon, Ohio, from where gas would be moved to the East Coast.
The advantages are listed as: Economic access to high-growth markets; physical connection between the Chicago hub and Lebanon; access to diverse, proven and reliable supply from Western Canada; and two-way flow capability from Lebanon into regional storage areas.
Alliance currently moves 1.35 billion cubic feet per day over its 2,200-mile system.
A month ago it received approval from the U.S. Department of Transportation to operate at a higher maximum allowable operating pressure instead of the current regulation that restricts it to 72 percent of the pipeline’s specified minimum yield strength.
Alliance said the increase is expected to improve fuel efficiency for its shippers and could lead to more gas flowing to markets in central and eastern US and elsewhere.
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