TransCanada: U.S. needs conventional gas

CALGARY, Alberta, Nov. 2 (UPI) -- Canadian pipeline company TransCanada said the lower 48 U.S. states will still need natural gas despite Alaskan interests in tapping into Asian markets.

With natural gas pipeline projects to the continental United States stalled, Alaska Gov. Sean Parnell is said to be considering having his state's natural gas processed into liquefied natural gas for Asian markets.

The delay is in part because of the development of shale gas resources in North America.

Russ Girling, president and chief executive officer at TransCanada, said his company would make adjustments if the state opted for LNG. He stressed, however, that the lower 48 states would still need conventional natural gas.

"Our view continues to be that the lower 48 will continue to need natural gas. It's an 80 billion cubic feet per day market," he was quoted by Alberta Oil magazine as saying. "And there is a need to replace 100 percent of the supply every five years. There is still a strong case to be made for the lower 48."

TransCanada and Exxon Mobil are entitled under the 2007 Gasline Inducement Act to get $500 million in reimbursements from the state for pipeline development. Girling said that measure always included LNG as an option.