By BEN LEFEBVRE
Alliance Pipeline received regulatory approval
for a proposed pipeline that would deliver natural gas from the
Bakken Shale formation to the Chicago market, the company
said this week.
The 106.5 million cubic feet/day Tioga
pipeline should be running by mid-2013, Alliance said. Although
new drilling technology has greatly boosted
hydrocarbon production in the Bakken, in
North Dakota's Williston Basin, a lack of pipelines has led oil
producers to resort to rail cars to move product and natural
gas producers have had to burn excess product.
"Moving more Williston Basin gas to market
will also help reduce flaring and provide direct environmental and economic benefits
to North Dakotans," said Mike McGonagill, senior vice
president and chief operating officer for Alliance
Alliance Pipeline is owned by Canadian pipeline companies
Enbridge and Veresen, according to the Alliance
Hess Corp., one of the major oil companies in the Bakken, has
contracted 61.5 million cubic feet/day of the pipeline,
Alliance said. The pipeline's capacity can be expanded further,
the company said.
Dow Jones Newswires