Alliance Pipeline Offers Post-2015 Capacity

CALGARY, July 15, 2013 /CNW/ - Alliance Pipeline announced today it is offering capacity on its system for natural gas transportation services effective December 1, 2015. Starting August 15, 2013, through a Precedent Agreement process, customers can express interest in December 1, 2015 capacity on the Alliance system. Capacity will be allocated on a first come, first served basis as Precedent Agreements are executed.

"Since last October, when we launched our proposed New Services Framework, Alliance has held over 60 customer consultations. The consultation process helped us further refine our service offerings to better meet shippers' needs in a dynamic marketplace", said Daniel Sutherland, Vice-President, Business Development. "The Precedent Agreement process we've put in place responds to the interest expressed in acquiring capacity on our pipeline, post-2015".

Most of Alliance's original 15-year term transportation agreements end November 30, 2015, and Alliance's new service offerings will be the basis for recontracting the pipeline. Alliance's New Services Framework includes:

• predictable and competitive fixed tolls;
• a suite of pipeline services to appeal to a diverse range of customers;
• a new Canadian trading pool; and,
• low-cost rich gas transportation to premium downstream markets that recognizes the commercial risks in today's natural gas marketplace.

As part of this new framework, Alliance will also be applying for regulatory approval to change its Hydrocarbon Dewpoint (HCDP) tariff specification effective December 1, 2015. The HCDP change will facilitate an increase in the natural gas liquids (NGL) component of the gas Alliance transports.

"To further establish Alliance as the transporter of choice for rich gas, we are initiating a change in our Hydrocarbon Dewpoint tariff specification from -10 degrees C (14 F) to -5 degrees C (23 F)", said Sutherland. "Alliance will be the only long haul, dense phase natural gas pipeline operating with an HCDP of -5 degrees C (23 F) shipping from Canada to premium downstream markets".

Unlike most natural gas pipelines, the Alliance system is capable of transporting methane and entrained NGL in a dense phase stream. Alliance's rich gas design allows producers to avoid costly investments in gas plant processing infrastructure. The Aux Sable Liquid Products plant at the Alliance system's southern end near Chicago extracts and fractionates the various NGL components into specific marketable products. Alliance's average annual capacity is 1.6 bcf/day and the system is in proximity to more than 6 bcf/d of natural gas supply looking for attractive markets.

A full description of the New Services Framework and Precedent Agreement process is posted on Alliance's website. Go to "Doing Business With Us" at www.alliancepipeline.com.

About Alliance Pipeline:

Alliance Pipeline Limited Partnership ("Alliance Canada") owns the Canadian portion of the Alliance Pipeline system.  Alliance Canada is owned 50 percent each by affiliates of Enbridge Income Fund Holdings Inc. (TSX:ENF) and Veresen Inc. (TSX:VSN).

Alliance Pipeline L.P. ("Alliance U.S.A.") owns the U.S. portion of the Alliance Pipeline system.  Alliance U.S.A. is owned 50 percent each by affiliates of Enbridge Inc. (TSX:ENB) (NYSE:ENB) and Veresen Inc. (TSX:VSN).

More information about the company is available at www.alliancepipeline.com.

SOURCE: Alliance Pipeline Limited Partnership

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Alan Roth
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