The three companies have signed a memorandum of understanding (MoU) to construct the Lebanon Connector pipeline, which will connect from either the Alliance Pipeline in Joliet, Illinois, or from an interconnect with the Vector Pipeline at or near Springville, Indiana. From either of the points selected, the new pipeline would connect to DEGT's Texas Eastern's existing Lebanon Lateral at Gas City, Indiana, from where gas could be transported to Lebanon, Ohio. Gas also could be moved from the emerging Lebanon hub to regional storage fields utilizing the planned bi-directional capabilities of the Lebanon Connector. "The Lebanon Connector will provide shippers with enhanced Midwest - mid- Atlantic connectivity, improving supply and market liquidity," said Jim Goldmann, vice president, transportation services and development for Alliance Pipeline Inc. The advantages of the proposed Lebanon Connector include economic access to high-growth US markets, provision of a physical connection between the Chicago market hub and Lebanon, Ohio, access to proven and reliable supply from western Canada, and a bi-directional capability to allow flow of gas from Lebanon into regional storage areas. Dependent upon the final route, the Connector would be 200-280km in length, and would follow the existing Texas Eastern Lebanon Lateral. Additionally, the pipeline would use existing available capacity and rights of way to minimize the impact on landowners and the environment, and to remain cost-effective.


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