FERC To Merge Gas Line Projects In Alaska's North Slope

San Francisco, CA (AHN) - The Federal Energy Regulatory Commission will work on combining two competing natural gas pipeline projects in Alaska.

Dow Jones reported Friday that the energy body volunteered to help merge the competing projects of TransCanada Corp., supported by the Alaska government, and a joint venture by ConocoPhillips and BP PLC.

FERC told the U.S. Congress that the companies should work together on one pipeline project from Alaska's North Slope to markets in Canada and the lower 48 states

Gov. Sarah Palin backed TransCanada as it agreed to terms requested by the state such as lower shipping rates. The Canadian company also competed in a bid to develop the Alaskan gas line.

TransCanada's proposal is estimated to cost between $26 billion and $30 billion.

BP and ConocoPhillips have proposed a similar project, however, the companies did not participate in the bid to avail for incentives and state partnership.

The two oil giants, along with ExxonMobil Corp., control a majority of oil reserves in North Slope. Exxon has yet to announce, which group it favors.

TransCanada appears to have the biggest advantage, according to Dow Jones.

Alaska's North Slope reportedly has 35 trillion cubic feet of gas reserves. Estimated reserves could go up as much as 250 trillion cubic feet, which is still undiscovered.