Alliance Pipeline has launched the first step toward developing a new short-haul natural gas pipeline in Alberta, soliciting non-binding expressions of interest from shippers for delivery into the Fort Saskatchewan region of the province.
The proposed "point-to-point" service would move up to 350mn cf/d (10mn m³/d) from northwest Alberta to Fort Saskatchewan, with an anticipated in-service date in late 2029. Unlike Alliance's existing long-haul route to the Chicago market, the new service would operate independently and could not be combined with existing contracts.
Submissions are due by 5 September and represent the initial stage in securing commercial commitments that would underpin construction. Alliance has previously announced a feasibility study to assess the project.
Fort Saskatchewan, part of the Edmonton industrial corridor, hosts Canada's largest cluster of integrated processing facilities, including petrochemical plants, refineries, and hydrogen production projects.
More than half of Canada's domestic gas consumption is tied to such industrial uses, including oil sands production, chemical manufacturing, and the emerging low-carbon hydrogen sector.
With North American gas export prices under sustained pressure, redirecting volumes to domestic end users is becoming a more attractive proposition for producers. The Edmonton area's concentration of processing and value-added industries offers a ready market that could offset weaker returns from traditional export sales.
The Alliance Pipeline spans 3,848km (2,391 miles) across Canada and the US, delivering an average of 1.6Bcf/d (45mn m³/d) of liquids-rich gas from western Canada to Chicago, Illinois. The system is fully owned and operated by Calgary-based Pembina Pipeline.
