Enbridge Inc. recently announced the completion of their agreement to sell their interests in the Alliance Pipeline and Aux Sable facilities to Pembina Pipeline Corporation for $3.1 billion. This divestiture, finalized on April 1, 2024, supports Enbridge's financing plan for strategic acquisitions in the U.S. gas utilities sector and debt reduction.
Pembina Takes Ownership
Following this acquisition, Pembina now holds:
100% ownership of the Alliance Pipeline and Aux Sable's Canadian operations.
85.4% ownership of Aux Sable's operations in the United States.
The remaining 14.6% interest in Aux Sable US is owned by Williams.
The Alliance Pipeline System
The Alliance Pipeline stretches 2,391 miles, functioning as an integrated natural gas gathering and transmission system. It connects the rich gas fields of the Western Canadian Sedimentary Basin and Williston Basin to the crucial Chicago market hub.
Key aspects of the Alliance Pipeline system include:
Interconnections with major pipelines: Natural Gas Pipeline, Vector Pipeline, Williston Basin Interstate Pipeline
Access to gas from processing plants:
Hess Midstream's Tioga plant
Aux Sable Midstream's Palermo conditioning plant
Major shippers on the Alliance Pipeline include Arc Resources, Ovintiv and Cannat Energy amongst others.
Aux Sable Midstream: The Palermo Conditioning Plant and Prairie Rose Pipeline
The Palermo Conditioning Plant (capacity: 80 mmscfd) plays a vital role by removing condensate (liquids) from natural gas before it enters the Alliance Pipeline via the Prairie Rose Pipeline.
This plant boasts a high average utilization rate of 96%.
83-mile Prairie Rose pipeline, with a 12-inch diameter, acts as the bridge between the Palermo plant and the vital Alliance Pipeline.
Aux Sable Liquid Products: Channahon/Morris NGL extraction and fractionation facility
Aux Sable Liquid Products owns and operates one of North America's largest facilities for NGL extraction and fractionation.
The Channahon/Morris plant:
Processes liquid-rich gas delivered through the Alliance Pipeline.
Offers a massive processing capacity of 2,100 Mmscfd.
Provides significant NGL storage with a capacity of 200,000 barrels.
The Channahon/Morris facility benefits from connections to major NGL and Natural Gas pipelines:
Enterprise's Mid-America NGL pipeline
Oneok's NGL North system
Natural Gas Pipeline of America
Want to gain a deeper understanding of the Midstream sector? Reach out to us at pc@aurainformatica.com for more information. Additionally, you can explore how to leverage energy data for your business by scheduling a free demo of our EnergyConnexions platform.
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