The 79.3 mile long and 12in diameter wide Tioga Lateral Pipeline project will be built to transport natural gas production from the Williston Basin to the Alliance mainline and from there to the Chicago market hub.

The capacity of the Tioga Lateral Pipeline is 106,500 million cubic feet per day (Mcf/day) which can be expanded based on the demand.

Alliance Pipeline senior vice president & chief operating officer Mike McGonagill said the pipeline approval will help the company address North Dakota’s natural gas transportation infrastructure needs.

"Moving more Williston Basin gas to market will also help reduce flaring and provide direct environmental and economic benefits to North Dakotans", McGonagill added.

"This is a major milestone that enables Alliance to further align with market and customer needs, while capitalizing on our unique ability to ship liquids rich natural gas since the Alliance pipeline is directly connected to the large-scale NGL extraction and fractionation facility near Chicago owned by Aux Sable Liquid Products."

The new pipeline is expected to begin services by mid-2013.

Hess Corp. has already contracted the services of the pipeline to transport 61,500 Mcf/day of natural gas.