Transcanada gets go-ahead for US$26bn Alaskan pipeline

Source: Energy Digital

Date :8/4/2008 11:52:52 AM

TransCanada Corp has received the support of the Alaska Legislature to award the company a license for the Alaska Pipeline Project.

“The Legislature’s decision represents a significant milestone in advancing this major natural gas pipeline project to connect stranded US natural gas reserves to Alaskan and Lower 48 consumers. We are pleased to receive this vote of confidence from the representatives of the people of Alaska,” commented Hal Kvisle (pictured), TransCanada’s president and CEO.

“This ratification of our license under AGIA (Alaska Gasline Inducement Act) will facilitate TransCanada’s continuing commercial negotiations with potential shippers, improving the likelihood of a successful open season and the construction of a natural gas delivery system from Prudhoe Bay to Lower 48 markets.”

The positive vote was the conclusion of a special session of the Legislature which reviewed the recommendation of Alaska Governor Sarah Palin and the Commissioners of Natural Resources and Revenue to issue TransCanada the license.

TransCanada’s application met all the AGIA requirements, which include protecting Alaska’s interests with reasonable commercial terms and the ability to provide in-state gas deliveries.

TransCanada said it will now move forward with project development, which will include engineering, environmental reviews, aboriginal relations and commercial work to conclude an initial binding open season by July 2010.

It is targeting to have the pipeline in service by September 2018.