Alliance pipeline tag up C$800 million

Cost estimates for the Alliance natural gas pipeline project, linking northern British Columbia and Chicago, are climbing into the danger zone.

Twice in the last six months, the consortium has raised the price tag, putting the final cost at C$4.5 billion, C$800 million above the original target. But Alliance spokesman Jack Crawford said there is no sign of wavering among the pipeline’s 37 shippers, although final contracts are still being negotiated. The price hikes have been blamed on construction delays and “cost escalations” for the U.S. portion resulting from a weakened Canadian dollar.

Crawford is confident the project will meet its October 2000 in-service date to start delivering 1.3 billion cubic feet per day.