TransCanada Needs Lawmaker Support For Gas Pipeline

Juneau, AK (AHN) -- TransCanada is proposing to build a 1,715 mile natural gas pipeline in Alaska which would deliver 127 million cubic meters of natural gas daily, or 7 percent of the country's current consumption. The pipeline spans Alaska's North Slope passing by the Yukon to the lower 48 states.

Alaska Gov. Sarah Palin supports the proposal but TransCanada still needs the Alaska Legislature to give it a state license to proceed with the project.

The debate has been ongoing for the past two weeks and needs to be decided by Aug. 2.

Questions have been raised as to the Canadian company's financial ability to undertake the project as it is expected to cost nearly $30 billion, while TransCanada is capitalized at only around $20 billion.

Lawmakers are also wary of giving TransCanada a license as it involves $500 million in seed money for the project.

At the same time, ConocoPhillips and BP PLC, which both hold leases on the North Slope natural gas, have recently joined forces on an alternate pipeline to Valdez, Alaska, where the gas would be pumped onboard natural gas tankers bound.

This project requires no upfront participation from the Alaska government.