Monday, May 3, 2010

TransCanada launches open season for proposed Alaska gas pipeline

TransCanada on April 30 began taking bids for space on its proposed natural gas pipeline from the North Slope.
The open season is the 90-day period in which a pipeline owner takes bids on space in the proposed line. Depending on the bids and the conditions placed upon them, the project might or might not proceed.
The Alaska Pipeline Project, as TransCanada has dubbed its proposal, was developed in accordance with the process outlined in the state’s Alaska Gasline Inducement Act (AGIA). That means the proposal complies with a variety of state-imposed requirements, in exchange for state assistance with the preconstruction planning and design costs and certain incentives.
The bids, if they come, will come from gas owners, and that primarily means the three major North Slope petroleum producers.
Exxon Mobil, the primary leaseholder at the North Slope’s largest undeveloped gas field, Point Thomson, is working with TransCanada. The two firms together have proposed two alternatives - a 1,700-mile line to Alberta, Canada, or an 800-mile bullet line to Valdez.

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