Enbridge, Veresen-owned Alliance Pipeline to develop 77-mile natural gas pipeline lateral, associated facilities to connect production from Hess Tioga field processing plant in Bakken region of North Dakota to Alliance mainline near Sherwood, North Dakota

Rachel Carter

Rachel Carter

CALGARY, Alberta , September 27, 2011 (press release) – Tioga Lateral Pipeline to connect Bakken natural gas production to Alliance Pipeline and Aux Sable processing facilities

Veresen Inc. (TSX: VSN.TO - News) and Enbridge Inc. (TSX: ENB.TO - News) (NYSE: ENB.TO - News), joint owners of Alliance Pipeline, today announced approval by their respective boards of directors which will allow Alliance to proceed with development of a natural gas pipeline lateral and associated facilities to connect production from the Hess Tioga field processing plant in the Bakken region of North Dakota to the Alliance mainline near Sherwood, ND. Alliance has executed a precedent agreement with Hess Corporation as an anchor shipper on the Tioga Lateral pipeline, including matching capacity on the Alliance mainline. Aux Sable (owned by Veresen, Enbridge and Williams Partners, L.P.) and Hess have reached a concurrent agreement for the provision of NGL services. The pipeline is expected to be in service by the third quarter of 2013, subject to regulatory and other required approvals.

The 77-mile (124-kilometer) Tioga Lateral will facilitate movement of the high-energy, liquids-rich natural gas to natural gas liquid (NGL) processing facilities owned by Aux Sable Liquids Products at the terminus of the Alliance mainline system. Through the agreement with Hess, Alliance has secured sufficient commitment to proceed with the Tioga Lateral and will hold an Open Season to solicit additional shipper interest. The pipeline will have an initial design capacity of approximately 120 million cubic feet per day, which can be expanded based on shipper demand.

Stephen White, President and CEO of Veresen commented, "With the rapid increase in crude oil drilling activity in the Bakken, there is a corresponding need for additional capacity to gather and process associated liquids-rich natural gas volumes. This creates tremendous opportunity for Veresen to leverage our core assets to create timely, flexible, market-driven solutions to enable producers to generate value from the NGL stream."

"Enbridge continues to focus on the Bakken as a strategic priority," said Al Monaco, President, Gas Pipelines, Green Energy and International, Enbridge Inc. "Our significant investments in crude oil transportation systems in North Dakota and Saskatchewan enable Bakken producers to access multiple markets. We're now extending those services to natural gas and NGL midstream infrastructure. The Tioga Lateral and the recently acquired Prairie Rose Pipeline and Palermo Condensate Recovery Plant (previously known as the Stanley Gas Plant) allow us to attract additional gas volumes to our Alliance Pipeline and draw additional liquids rich gas to our Aux Sable NGL extraction and fractionation facilities."

The Bakken region of southern Saskatchewan and northern North Dakota is one of the most prolific resource plays in North America. While expansion in the Bakken has been primarily driven by oil shale, there is also significant value in the natural gas and NGL reserves associated with the oil.

Together, Alliance and Aux Sable offer Bakken natural gas producers access to high value downstream gas and Midwest NGL markets. Alliance carries high BTU gas to Aux Sable's processing and NGL extraction plant in Channahon, Illinois. Utilization of these existing midstream assets to serve the Bakken provides producers with readily available solutions to transport gas to market and realize value from the NGLs extracted. Leveraging existing infrastructure minimizes the environmental and stakeholder impact of new construction, allowing for flexible, timely and cost-efficient expansion as Bakken volumes increase.

About Veresen Inc.

Veresen Inc. is a publicly traded dividend paying corporation based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. Its common shares and 5.75% convertible unsecured subordinated debentures, Series C due July 31, 2017 are listed on the Toronto Stock Exchange under the symbols "VSN" and "VSN.DB.C", respectively. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in two pipeline systems, the Alliance Pipeline and the Alberta Ethane Gathering System; a midstream business which includes ownership interests in a world-class extraction facility near Chicago and other gas processing energy infrastructure; and a power business with renewable and gas-fired facilities and development projects in Canada and the United States, and district energy systems in Ontario and Prince Edward Island. Veresen and each of its pipeline, midstream and power businesses are also actively developing a number of greenfield projects. In the normal course of its business, Veresen and each of its businesses regularly evaluate and pursue acquisition and development opportunities. For more information visit www.vereseninc.com.

About Enbridge Inc.

Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.