Alliance to Develop Natural Gas Facilities in North Dakota

Alliance announced plans to develop a pipeline and associated facilities in North Dakota to transport liquids-rich natural gas. Hess Corporation has entered into a precedent agreement with Alliance for service on the proposed 80-mile lateral pipeline, which would connect production from Hess' gas processing facility in Tioga, ND to the Alliance mainline near Sherwood, ND, for onward shipment to the Chicago market hub.

The pipeline's initial design capacity is approximately 120,000 Mcf/day, and can be expanded based on shipper demand. Alliance will hold an open season this summer to identify further shipper transportation needs.

The Tioga Lateral Project has a planned in-service date of July 2013, subject to regulatory and other required approvals.

"The Alliance system ships high-energy, liquids-rich natural gas, to NGL processing facilities owned by Aux Sable Liquid Products at the terminus of the mainline system near Chicago," said Murray Birch, Alliance president and CEO. "We are pleased that the Tioga Lateral Project will enable us to offer Williston Basin producers a value-added transportation option that is unique in North America."