No interest in TransCanada's gas pipeline?

Aug. 17, 2011 at 8:02 AM   |   0 comments

JUNEAU, Alaska, Aug. 17 (UPI) -- TransCanada hasn't had any luck in attracting customers to a proposed natural gas pipeline in Alaska, a company official told Alaskan lawmakers.

Tony Palmer, vice president of TransCanada, told Alaskan legislatures that his company hasn't attracted solid agreements critical to TransCanada's plans to build a natural gas pipeline from Alaska's North Slope.

"Our commercial timeline is behind schedule," he was quoted by the Anchorage (Alaska) Daily News as saying.

TransCanada and Exxon Mobil are entitled under the 2007 Gasline Inducement Act to get $500 million in reimbursements from the state. Alaskan officials, however, are considering a smaller option to move gas from the North Slope.

Denali, a joint venture between BP and ConocoPhillips, announced in May that it was giving up on plans to build its rival natural gas pipeline, saying development of shale gas resources in North America "created a very difficult environment" to get financial commitments from potential customers.

A 90-day open season to get shipper commitments for TransCanada's option expired July 30. Palmer said despite the setback, the project's technical developments were on schedule.

Topics: Tony Palmer
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