TransCanada on track with Alaska Project

Per its agreement with the state under the Alaska Gasline Inducement Act, TransCanada Corp. is continuing on schedule to file a public convenience and necessity application with FERC for the Alaska Pipeline Project to transport to Lower 48 markets. In December 2011, TransCanada deferred its filing of draft resource reports and the first scoping meeting for the project that was scheduled for 18 January was canceled by FERC. FERC said remaining scoping meetings would be canceled if TransCanada failed to file the draft resource reports, as the reports list the potential environmental effects and further define the project and as a result are necessary for the meetings. The Alaska Gasline Inducement Act outlines that TransCanada may be reimbursed by the state up to USD500 million for the completion of the application, regardless of whether or not the pipeline comes to be. Producers are being encouraged by Alaska Governor Sean Parnell to export the gas to the Pacific Rim and TransCanada has been in discussions with North Slope producers regarding the LNG option. Alaska Natural Gas Transportation Projects federal coordinator, Larry Persily has said that producers would lose out on USD1 billion in tax savings should the plan change. Producers are expected to announce plans later in the year.

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