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Rockies Alliance Pipeline Alliance and Questar Announce Plans to Develop a Natural Gas Pipeline From Wamsutter, Wyoming to the US Canadian Border

Posted on: Tuesday, 25 March 2008, 15:00 CDT

CALGARY, Alberta, March 25 /PRNewswire/ -- Today, Alliance Pipeline Inc. (Alliance) and Questar Overthrust Pipeline Company (Questar) announced that they have entered into a Memorandum of Understanding (MOU) to develop the Rockies Alliance Pipeline (RAP), a jointly owned interstate natural gas pipeline from Wamsutter, Wyo., to the Minnesota U.S./Canadian border (Emerson trading hub). The proposed 42-inch pipeline will traverse approximately 800 miles northeasterly through Wyoming, Montana and North Dakota; connecting the fastest-growing natural gas producing region in North America -- the Rockies -- with robust natural gas markets in the U.S. Midwest and central Canada. RAP is proposing to interconnect with downstream pipelines (Alliance Pipeline, Northern Border, Great Lakes Transmission and TransCanada Pipeline) to provide direct access to the Chicago Hub, Michigan and Dawn storage, and upper Midwest and Northeastern markets.

RAP provides maximum receipt flexibility to access the growing gas supplies in the Rocky Mountain Region originating in the Wamsutter hub (Questar, WIC, CIG and REX) as well as the Powder River Basin area (Dead Horse and Gillette, Wyo., area). RAP also provides multiple delivery options and will offer zonal rates with the various interstate pipelines.

A binding open season is scheduled to commence May 1, 2008. Alliance and Questar will work with prospective shippers to determine the most efficient size, route and timing of in-service date for the RAP facilities and are flexible in the project design to meet shippers' needs in the most effective way.

"Alliance has extensive expertise in constructing and operating transmission systems. We are pleased to be partnering with Questar to develop a system to serve the growing U.S. markets in the Midwest and Northeast," says Murray Birch, Alliance president and CEO.

"Rockies natural gas is an attractive alternative to Canadian gas and imported LNG", said Allan Bradley, Questar Pipeline president and CEO. "Alliance and Questar Pipeline are teaming up to offer our customers seamless natural gas transportation from multiple Rockies basins to growing natural gas markets in the East. This is a project whose time has come."

Subject to obtaining shipper commitment for this system and regulatory approvals, the pipeline is expected to be placed into service as early as third quarter 2011.

About Alliance Pipeline:

Alliance Pipeline L.P. (Alliance U.S.A.) owns the U.S. portion of the Alliance Pipeline system. Alliance U.S.A. is owned 50 percent each by affiliates of Enbridge Inc. (TSX: ENB) and Fort Chicago Energy Partners L.P. (TSX: FCE.UN).

Alliance Pipeline Limited Partnership (Alliance Canada) owns the Canadian portion of the Alliance Pipeline system. Alliance Canada is owned 50 percent each by affiliates of Enbridge Income Fund (TSX: ENF.UN) and Fort Chicago Energy Partners L.P. (TSX: FCE.UN).

About Questar Pipeline: Questar Pipeline Company is a subsidiary of Questar Corp. Questar Corp. is a natural gas-focused energy company with an enterprise value over $10 billion. Questar finds, develops, produces, gathers, processes, transports, stores and distributes natural gas.

Forward Looking Information:

Certain information contained in this news release constitutes forward-looking statements. The words "anticipate", "expects" and "expected to" and similar expressions are intended to identify such forward-looking statements. Although Alliance believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties including, but not limited to, future operating performance, regulation, economic conditions and fundamentals affecting the oil and gas producing and marketing industries. Should one or more of these risks or uncertainties materialize or fail to materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.

Alliance Pipeline Inc.

CONTACT: Eric Besseling, Director, Business Development,+1-403-517-6551, eric.besseling@alliance-pipeline.com, or Lorraine Lindberg,Business Development Manager, +1-713-206-1242,lorraine.lindberg@alliance-pipeline.com, both of Alliance Pipeline; or GarySchmitt, General Manager, Marketing & Business Dev., +1-801-324-2938,gary.schmitt@questar.com, or Shelley A. Wright, Director, BusinessDevelopment, +1-801-324-2509, Shelley.wright@questar.com, both of QuestarCorporation; or Rebecca Sullivan of Alliance Pipeline Inc., +1-403-517-7742,rebecca.sullivan@alliance-pipeline.com; or Steve Chapman of QuestarCorporation, +1-801-324-5548, steve.chapman@questar.com

Web site: http://www.alliance-pipeline.com/http://www.questar.com/

Source: PRNewswire

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