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TransCanada and ExxonMobil To Work Together on Alaska Gas Pipeline

TransCanada Corporation and ExxonMobil have reached an agreement to work together on an Alaska gas pipeline. The project has an initial forecasted capital cost of US$26 billion.

Agia
Project map. Click to enlarge.

In November 2007, TransCanada Alaska and Foothills jointly submitted an application under the Alaska Gasline Inducement Act (AGIA) to build a 4.5 billion cubic feet per day 48-inch diameter natural gas pipeline running approximately 2,700 kilometers (1,700 miles) from a new natural gas treatment plant at Prudhoe Bay on Alaska’s North Slope to Alberta, Canada with an LNG option to deliver gas supplies to a liquefaction facility at Valdez.

In December 2008, TransCanada was awarded the AGIA license after an open and transparent competitive bid process and receiving the approval of the Alaska legislature. TransCanada has moved forward with project development, which includes engineering, environmental reviews, Alaska Native and Canadian Aboriginal engagement, and commercial work to conclude an initial binding open season by July 2010.

TransCanada Alaska Company, LLC and subsidiaries of Foothills Pipe Lines Ltd. will remain the Alaska Gasline Inducement Act (AGIA) licensees and TransCanada will continue as the primary point of contact with the State of Alaska and the general public for this project. As TransCanada and ExxonMobil work together with the goal of successfully advancing a pipeline project, the AGIA contract obligations of TransCanada to the State remain unaffected.

Comments

ejj

The pipeline isn't new...Exxon's involvement is - but ExxonMobil isn't involved in pipelines very much, so maybe they're just trying to figure out a way to invest some of the billions they've made in recent years thanks to the speculators on Wall Street. At any rate, viva energy independence!

SJC

Last time I heard it was $20 billion and now $26 billion. Exxon has made about $40 billion in profits every year for about the last 6 years. I think that they can afford this.

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