Note:  This text was released today by Natural Gas Intelligence after an 
interview with Alliance personnel

Construction Completed on Alliance Pipeline

The C$4.6 billion Alliance natural gas and liquids pipeline, designed to 
transport 1.325 Bcf/d from northeast 
British Columbia to Chicago, has completed its construction phase and now is 
commissioning the main line, 
laterals, compressors and supervisory equipment. 

The final weld was completed last week near Regina, SK, and Alliance now is 
injecting linepack. The 1,857 
mile mainline is stretched to the Chicago area from northeastern BC. October 
is still the target month to begin 
service of the pipeline, which will carry both natural gas and liquids. 

The pipeline system will transport natural gas through a 36-inch diameter 
high-pressure line. There will be 14 
mainline compressor stations: seven in Canada and seven in the U.S. When it 
began construction in 1999, 
Alliance already had commitments from 37 shippers for 15-year contracts worth 
a total of $8.2 billion.

The large volumes of gas Alliance will haul from western Canada into the U.S. 
Midwest is expected to have 
a major impact on existing pipelines, markets and prices. TransCanada 
PipeLines already has filed for new 
tolls to compensate for customers which have failed to renew firm contracts 
on its line and instead are routing 
their gas through Alliance. New gas that makes its way into the Chicago area 
could be sent on to southern 
Ontario through the Chicago-to-Dawn Vector Pipeline, scheduled to open in 
late October with intial capacity 
of 720 Bcf/d.  The Foothills/Northern Border route from western Canada into 
the Midwest also is expected to 
see some slack. 

Alliance spokesman Jay Godfrey said last month that "when October comes we 
won't be in the position that 
we'll have to start filling the pipe. It essentially already is going to be 
full." Connections to 37 gas plants are 
already complete. 

Investors in Alliance Pipeline Limited Partnerships include affiliates of 
Coastal (14.4%), Enbridge (21.4%), 
Fort Chicago Energy Partners LP (26%), Williams (14.6%) and Westcoast Energy 
(23.6%).