Unocal increases stake in Alliance pipeline to 9,1 %
Unocal has increased its interest in the Alliance Pipeline project to 9.1 %, by acquiring the partnership interests
of Ranger Oil Limited and Pinnacle Resources Ltd. Prior to the transactions, various Unocal subsidiaries held a 5.0 %
equity stake in the Alliance Pipeline limited partnerships.
"The Alliance Pipeline project is an excellent long-term market-to-resource opportunity for Unocal," said Brian C.
Conners, Unocal's general manager for pipelines. "This pipeline provides us with three major earnings sources -
increased value of our Aitken Creek and other upstream gas assets in Canada, a strong revenue stream from pipeline
tariffs, and good returns on the natural gas liquids plant."
The Alliance Pipeline system is designed to carry natural gas from western Canada to the Chicago-area market centre
for distribution throughout North America. Unocal's Aitken Creek gas storage and processing facility is located at
the origin of the pipeline. The $ 3 bn, 1,900 mile-long, large-diameter pipeline and natural gas liquids extraction
plant are being developed by Canadian and U.S. limited partnerships comprised of gas producing, marketing and
pipeline companies. The projects are scheduled for start-up in late 1999 subject to receiving necessary Canadian and
U.S. approvals.
The Alliance Pipeline currently has long-term shipper commitments to transport 1.3 bn cfpd of gas from Canada into
the U.S.
