Alliance receives regulatory approval for proposed Bakken gas pipeline


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 Pipeline.

Alliance Pipeline is owned by Canadian pipeline companies Enbridge and Veresen,  according to the Alliance website.

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

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