Alliance Canada
Natural Gas Transmission
Enbridge Income Fund has a 50% interest in the Canadian portion of the Alliance System, which transports natural gas from supply areas in northwestern Alberta and northeastern British Columbia and other areas along the system to delivery points near Chicago, Illinois.
Alliance Canada, which provides a high-pressure, liquids-rich natural gas transmission service from western Canada to the Chicago market hub, is making good progress in expanding its network and strengthening its competitive position.
In January 2009, the BCX Expansion Project commenced operation, enhancing capacity for natural gas receipts originating in northeastern British Columbia. Alliance Canada has the strategic positioning and financial strength and flexibility to take full advantage of the excellent development opportunities in this region, where the Montney and Horn River shale formations combined have an estimated 50 to 75 trillion cubic feet of natural gas reserves.
Alliance's geographical positioning, competitive toll structure and ability to ship liquids-rich natural gas
also position it well to benefit from development of associated gas in the Bakken oil formation in
southern Saskatchewan.
Alliance continues to progress the development of new receipt capacity along its pipeline route and its first-ever delivery service into Canadian markets. The Gathering Receipt Service (GRS) will provide a gathering service from northeastern British Columbia to south-central Alberta. The Canadian Delivery Service (CDEL) will deliver gas to Canadian markets from receipt points in northwestern Alberta and northeastern British Columbia, providing customers with more choice and flexibility at the most competitive tolls. Thus far, Alliance has signed agreements with shippers to develop four new receipt point interconnections, which will provide for initial GRS capacity of more than 50 mmcf/d. The expected in-service date for these facilities is the fourth quarter of 2011. We expect that demand for services like these will continue to grow as production out of northeastern British Columbia ramps up.
