TransCanada has the license under the Alaska Gasline Inducement Act for state incentives to build the line in exchange for meeting a number of “must haves” the state is requiring to ensure open access to the pipeline and pipeline expansion for new gas discoveries on the North Slope.

AGIA provides that anyone partnering with TransCanada in the project is bound by TransCanada’s AGIA commitments.

“TransCanada’s Alaska Pipeline project will connect Alaska’s natural gas resource to new markets. We are pleased that TransCanada and ExxonMobil have reached agreement on initial project terms to progress this exciting initiative,” TransCanada President and Chief Executive Officer Hal Kvisle said in statement.

“TransCanada envisions that our combined activities with ExxonMobil, along with the support of the State of Alaska, the U.S. and Canadian governments, and other interested parties, will result in the timely completion of the project. Today’s announcement is an important step toward that goal,” he said.

Rich Kruger, president of ExxonMobil Production Co., said, “ExxonMobil and TransCanada have the experience, expertise and financial capability to undertake this project. We have on-the-ground knowledge of Alaska and Canada, experience working in the Arctic, a strong history of technology and innovation, and the proven ability to build and operate projects of enormous scale in the most challenging environments.”

See story in June 14 issue, available online at noon, Friday, June 11, at www.PetroleumNews.com