Canada's NEB approves Alliance pipeline
Canada's National Energy Board has approved the $4 billion (Canadian) Alliance natural gas and liquids pipeline project from Western Canada to Chicago.
NEB attached 54 conditions to its approval relating to protection of property, the environment, and public safety for the 1,864-mile high-pressure line from Northeast British Columbia to the U.S. Midwest.
The line has already received regulatory approvals for the U.S. segment.
Status
Alliance Pres. and CEO Dennis Cornelson said that the board approval is a very important next-to-last step in approvals needed to build and operate the line. The federal cabinet must still approve the NEB recommendation. Federal Environment Minister Christine Stewart has already said she approves of the project and that it is not likely to cause any significant adverse environmental effects.Meanwhile, an environmental lobby group opposed to Alliance says it plans to appeal the NEB decision in court. Mike Sawyer, executive director of the Citizens' Oil & Gas Council, said the group will file an appeal within 30 days. Sawyer said the board made a number of legal errors.
Some Canadian gas producers and environmental lobby groups opposed the project at the NEB hearing, which lasted 77 days. Questions were raised as to whether there would be sufficient gas wellhead deliverability to meet the added capacity of Alliance as well as system expansions by TransCanada PipeLines Ltd. and Northern Border Pipeline. Alliance has contracts to move up to 1.3 bcfd of gas.
Alliance plans to begin construction in January, subject to final approval, with a planned completion date in October 2000.
Investors in the Alliance Pipeline Limited Partnerships include: Fort Chicago Energy Partners LP 26%, Enbridge Inc. (formerly IPL) 21.4%, Westcoast Energy Inc. 14.5%, Coastal Corp. 14.4%, Duke Energy Corp. 9.8%, Unocal Corp. 9.1%, and Williams 4.8%.
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