ANCHORAGE, Alaska, Jan. 30 (UPI) -- The Canadian pipeline company TransCanada Corp. said in filed documents the cost of its proposed Alaska North Slope pipeline will be more than expected.
The company said in documents filed with regulators Friday the final cost of the natural gas pipeline in Alaska could reach $41 billion, nearly twice what was initially expected, the Anchorage (Alaska) Daily News reported Saturday.
TransCanada said in Friday's documents the pipeline will result in reduced gas shipment charges for oil producers like Conoco Phillips and Exxon Mobil.
The company said it has offered to lower producers' shipment costs by $500 million a year for 25 years, a possible total savings of $12.5 billion.
TransCanada officials say despite the expected increase in the project's final cost, the pipeline could begin delivering gas in 2020.
The Daily News said the project has been deemed a critical addition to Alaska's economy by some state officials.
