October 5, 2016 / 7:27 PM / 2 years ago

UPDATE 1-Alliance natgas pipeline to shut for 7 days from Oct. 12

(Adds natural gas flows, trader comments)

CALGARY, Alberta, Oct 5 (Reuters) - The Alliance natural gas pipeline will shut down for seven days from Oct. 12 while new sections of pipe are installed at two places in western Canada, Alliance Pipeline LP said on Wednesday.

The work is being done to accommodate a new highway being built in Regina, Saskatchewan, with pipe being replaced in each of the two locations where the highway will cross the mainline.

Alliance spokesman Alan Roth said the temporary shutdown will stop all deliveries of gas on the pipeline from British Columbia and Alberta into the United States. Alliance moves gas from western Canada to the U.S. Midwest.

Over the past 30-days Canada has exported about 1.7 billion cubic feet per day of gas to the United States on the Alliance pipeline, according to Reuters data.

Alliance Pipeline LP, which is sponsored by affiliates of Enbridge Income Fund and Veresen Inc, said it has worked with customers to minimize business impacts and expects no material negative financial impact as a result of the outage.

Gas traders said exports of Canadian gas to the United States would likely move to other pipes, including Northern Border and TransCanada, now that shippers have notice and ample time to adjust.

Over the past 30-days, Canada has exported on average 7.9 bcfd of gas to the United States, according to Reuters data.

The Alliance Pipeline is one of the most important liquids-rich natural gas conduits between Western Canada’s Montney region and the Chicago market hub.

Shippers include Seven Generations Energy and Crew Energy Inc.

Alliance plans to remove natural gas from the affected section of pipeline by flaring before the replacement work begins. (Reporting by Nia Williams in Calgary and Scott DiSavino in New York; Editing by Frances Kerry and Grant McCool)

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