TransCanada alone meets Alaska's criteria for gas pipeline

A Calgary company has comeone step closer to having the exclusive right to build a natural gas pipeline from northern Alaska.

The application from TransCanada Alaska Co., LLC/Foothills Pipelines, Ltd., a subsidiary of Calgary-based TransCanada Corp., was the only onethat met all the state's requirements for building the North Slope pipeline,Alaska Gov. Sarah Palin said Fridayat a new conference in Anchorage, Alaska.

"We have long stated that it only takes one good application. We're thrilled to have a project sponsor willing to build a pipeline on terms that benefit all Alaskans," Palin said.

Five applications were submitted for the exclusive right to build the 5,600-kilometre pipeline, which is expected to cost more than $20 billion US. The line, if completed,would transport gas from the state's North Slope, through the Yukon, British Columbia and Alberta to markets in the U.S. Midwest.

Companies had until Oct. 1 to submit proposals to the state for construction and operation of the pipeline.

TransCanada'sapplication will now be evaluated by the state governmentto determine whether it maximizes the benefits to Alaskans and merits issuance of the exclusive licence.

As part of that evaluation, a 60-day public-comment period on TransCanada's application opens Saturday.

Afterward, if the state determinesthat the applicationmeets those requirements,it will be forwarded to the Alaska legislature for approval.

As the winning bid, the company couldreceive, among other incentives, a $500-million US matching grant from the state.

Applications were submitted under the Alaska Gasline Inducement Act, or AGIA, passed by the statein May 2007.

The other fourapplications were from the Alaska Gasline Port Authority, AEnergia LLC, Sinopec ZPEB and Alaska Natural Gasline Development Authority.

Those companies were notified Friday that their applications did not meetthe requirements set out by the law, and will not be evaluated further.