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The State of Alaska recently announced that TransCanada’s application for a license to construct an Alaska natural gas pipeline under the Alaska Gas Inducement Act (AGIA) was the only proposal that met all the state's requirements. TransCanada submitted an application on Nov. 30, 2007.
The project proposes to move natural gas from Prudhoe Bay in northern Alaska to North American markets. The pipeline would stretch more than 2,700 km (1,700 miles), following the route of the existing trans-Alaska oil pipeline and the Alaska Highway and continuing through northern British Columbia to link with the pipeline grid in northwestern Alberta.
The proposed project will include:
- A gas treatment plant that will process approximately 5 bcf/d of residue gas from the existing Central Gas Facility at Prudhoe Bay
- A new pipeline system that will extend from the gas treatment plant in Alaska to Boundary Lake on the British Columbia-Alberta border
- New build and use of existing pipeline infrastructure in Alberta
- Fort Nelson Option, an option to move the Alberta System Receipt Point upstream of Boundary Lake, to Fort Nelson, British Columbia
- Access to natural gas liquids (NGL) extraction at existing third-party facilities in Alberta
- Liquefied Natural Gas (LNG) alternative
The current estimated capital cost of the project is US$26 billion. Construction of the project would begin after regulatory approvals are received in 2013. The pipeline would be in service by 2017.
Next steps
The State of Alaska will evaluate TransCanada's application to determine if it maximizes the benefits to Alaskans and merits an exclusive license. As part of the evaluation, a 60-day public comment period on TransCanada's application began Jan. 5, 2008. If the state determines the application meets those requirements, it will be forwarded to the Alaska legislature for approval. If TransCanada is granted the License, then we will move forward to an Open Season in 2009.
For further information, see the Alaska Pipeline Project on TransCanada’s website.
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