December 5, 2008

Alaska Commissioners Sign AGIA License

In a major milestone in state history, Governor Sarah Palin today joined Natural Resources Commissioner Tom Irwin and Revenue Commissioner Patrick Galvin as the Alaska Gasline Inducement Act license was signed in Fairbanks.

The AGIA license was awarded jointly to TransCanada Alaska , LLC (TC Alaska) and Foothills Pipe Lines Ltd. (Foothills) through its applicable Canadian subsidiaries identified in the Northern Pipeline Act as having responsibility for the various zones of the project in Canada . TC Alaska and Foothills are both wholly owned entities of TransCanada Corporation.

"TransCanada's record of delivering projects on time and on budget is unsurpassed in the industry," Governor Palin said. "Their commercial skill and approach to solving problems will no doubt be of value to us as we continue to take the necessary steps forward on this project."

Today's event culminates a two-year process during which the AGIA concept was developed and became law. It also marks a giant step forward in achieving the long-deferred Alaska dream of a natural gas pipeline to bring Alaska 's vast resource to market.

"This year we have seen significant resource exploration and development in Alaska," said Commissioner Irwin. "The signing of the AGIA license is a huge step forward in the development of Alaska 's natural gas resources."

"Today is a historic day, and the AGIA license is an important milestone. However, much work remains, and we will keep working with all project stakeholders to make the natural gas pipeline a reality," said Commissioner Galvin.

TransCanada proposes a 4.5 billion cubic feet per day (bcf/d), 48-inch diameter, mostly buried pipeline running 1,715 miles from a natural gas treatment plant at Prudhoe Bay on the North Slope to the Alberta Hub in Canada. The Alaska section will be approximately 750 miles in length with six compressor stations at startup and five natural gas delivery points in Alaska.

"An Alaska pipeline will bring huge economic benefits to the state of Alaska , its people and its producers," said Hal Kvisle, president and chief executive officer of TransCanada. "And TransCanada is excited by the opportunity to take on this important role."

From a State of Alaska press release