The open season for the Alaska Pipeline Project, APP (the project licensed to TransCanada in late 2008 by the State of Alaska under the Alaska Gasline Inducement Act, AGIA), began April 30, 2010, and ended July 30, 2010.

“During the open season, producers expressed significant interest in the Alberta Project in the form of conditioned bids for capacity on that pipeline,” TransCanada told FERC, referring to the plan to take North Slope gas to Lower 48 markets through Canada. The company said there were “concerted negotiations for many months” between APP and the Alaska North Slope producers, but despite “good faith efforts” by all parties to the negotiations, no precedent agreements, binding commitments to “ship or pay” on the line, were signed.

TransCanada said it is APP’s “assessment that the producers are not prepared to make commercial commitments to the Alberta Project at this time,” and it is withdrawing the transportation service offerings in the 2010 open season notice.

APP is working with the ANS producers on the feasibility of a project including a pipeline to a liquefied natural gas facility at tidewater in Southcentral Alaska, TransCanada said.

If those evaluations lead to a project that appears commercially viable, or if there is renewed interest in taking gas to Alberta, TransCanada said APP would initiate a new open season.

Amendments to the plan in the AGIA license approved by the state May 2 call for initial work on an LNG project to be completed by September with an open season by the end of the year.

—Kristen Nelson

See related story in the May 6 issue, available online today at 11 a.m. at www.PetroleumNews.com