New operating structure at Alliance Pipeline expected to result in fewer employees

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CALGARY — One of the two Calgary-based pipeline companies that own Alliance Pipeline Ltd. says there will be an unspecified number of job cuts as the partners move to end its standalone management structure.

Alliance says 50-50 partners Enbridge Income Fund, a division of Enbridge Inc., and Pembina Pipeline Corp. will manage Alliance through an “owner-operator model,” with implementation to be completed during the summer.

Enbridge spokeswoman Suzanne Wilton says “some workforce reductions” are expected but declined to give details. She says Enbridge is to manage Alliance’s operations and Pembina will be responsible for commercial and finance functions.

According to a filing last year, Alliance had 294 employees in Canada and 56 in the United States at of the end of 2016. Wilton says the current total is about 360.

Alliance president and CEO Terrance Kutryk left the company in December and was replaced by co-presidents Jason Wiun from Pembina and Mark Fiedorek of Enbridge.

Alliance operates a 3,800-kilometre pipeline system that transports liquids-rich natural gas from Western Canada and North Dakota to the Chicago market. The pipeline came into service in late 2000 and currently delivers an average of 1.6 billion cubic feet per day to the Aux Sable natural gas liquids extraction facility.

Companies mentioned in this story: (TSX:PPL, TSX:ENF)

The Canadian Press