Content
Strategy
Alliance Canada manages its operating assets and infrastructure with the objective of maximizing shipping capacity, excelling in operating performance and increasing the competitiveness of its tolls. By focusing on its core business, Alliance Canada has continued to meet or exceed its previous record in all key areas of operational performance; availability, reliability, safe operations, throughput and efficiency. Alliance Canada has successfully implemented several pipeline optimization projects and will continue to consider further optimization initiatives and growth opportunities, through expanded receipt capacity and new service offerings with an aim of increasing the competitiveness of its tolls and demand for services to ensure steady and sustainable cash flow.
BC Expansion Project
In December 2008, Alliance Canada completed construction of the expansion project in British Columbia that was built in response to shipper demands for increased receipt capacity on the Taylor-Aitken Creek lateral system in northeastern British Columbia. The project was completed in line with budget and involved construction of the Taylor Junction compressor station and includes a 7,000 horsepower turbine, a control and maintenance building with remote monitoring equipment and a high-pressure gas cooler. This project did not increase the mainline capacity but has enabled Alliance to ship an incremental 150 mmcf/d of gas out of the area.
2009 Toll Filing
On October 31, 2008, following consultation with its shippers, Alliance Canada filed its 2009 tolls with the NEB. Alliance Canada’s 2009 tolls increased slightly from $0.859 per million cubic feet (mcf) to $0.863/mcf on January 1, 2009. Offsetting factors permitted the rates to remain substantially consistent.
Lower general and administrative (G&A) expenses and decreased compressor maintenance costs were offset by rising legal costs for compliance and regulatory matters, higher pipeline integrity expenses and increased environmental costs resulting from new climate change legislation in Alberta and British Columbia. Lower G&A expenses resulted from decreased spending on computer hardware and software as well as lower insurance premiums on policy renewals. Compressor maintenance costs decreased in 2008 as a result of the new CSA II maintenance contract effective March 2008.