Pembina gets regulatory OK for Alliance Pipeline deal

Executive Summary

• Pembina Pipeline Corp. received approval from the Canada Energy Regulator (CER) for a negotiated settlement regarding the Canadian portion of the Alliance Pipeline.
• The settlement establishes a "just and reasonable" tolling structure for the next ten years, resolving disputes between Alliance Pipeline Limited Partnership, shippers, and interested parties.
• Pembina views this approval as a positive step for maximizing the value of this critical North American energy infrastructure asset.

Key Details

• Regulatory Body: Canada Energy Regulator (CER).
• Subject: Approval of the negotiated settlement between Alliance Pipeline Limited Partnership and the Shipper Committee/interested parties.
• Scope: The approval specifically covers the Canadian portion of the Alliance Pipeline.
• Tolling Structure: The settlement establishes a tolling structure valid for the next ten years.
• Asset Description (Alliance Pipeline):
  • Delivers an average of 1.7 billion cubic feet per day of liquids-rich gas.
  • Total length: Approximately 3,850 kilometres.
  • Canadian Portion: 1,561 km natural gas mainline pipeline and related lateral pipelines, connected to receipt locations primarily in northwestern Alberta and northeastern British Columbia.
  • U.S. Portion: 1,556 km of infrastructure, including the 129 km Tioga lateral in North Dakota.
  • Route: From the WCSB and Williston basin (North Dakota) to natural gas markets in the Chicago area.

Notable Quotes

• "We are pleased that the CER has approved the settlement between Alliance and the Shipper Committee, resulting in a just and reasonable tolling structure for the next ten years," said Scott Burrows, Pembina's president and chief executive officer. "Pembina looks forward to continuing to deliver exceptional customer service and maximizing the value of this critical and highly differentiated North American energy infrastructure asset."