Story last updated at 12/17/2008 - 3:45 pm
Fairbanks - In a major milestone in state history, Gov. Sarah Palin joined Natural Resources Commissioner Tom Irwin and Revenue Commissioner Patrick Galvin Dec. 5 as the Alaska Gasline Inducement Act license was signed in Fairbanks.
The AGIA license was awarded jointly to TransCanada Alaska, LLC and Foothills Pipe Lines Ltd. through its applicable Canadian subsidiaries identified in the Northern Pipeline Act as having responsibility for the various zones of the project in Canada. TC Alaska and Foothills are both wholly owned entities of TransCanada Corporation.
"TransCanada's record of delivering projects on time and on budget is unsurpassed in the industry," Palin said. "Their commercial skill and approach to solving problems will no doubt be of value to us as we continue to take the necessary steps forward on this project."
The signing culminates a two-year process during which the AGIA concept was developed and became law. It also marks a step forward in achieving the long-deferred Alaska dream of a natural gas pipeline to bring Alaska's vast resource to local and outside markets.
"This year we have seen significant resource exploration and development in Alaska," Irwin said. "The signing of the AGIA license is a huge step forward in the development of Alaska's natural gas resources."
Added Galvin: "Today is a historic day, and the AGIA license is an important milestone. However, much work remains, and we will keep working with all project stakeholders to make the natural gas pipeline a reality."
TransCanada proposes a 4.5 billion cubic feet per day, 48-inch diameter, mostly buried pipeline running 1,715 miles from a natural gas treatment plant at Prudhoe Bay on the North Slope to the Alberta Hub in Canada. The Alaska section will be approximately 750 miles in length with six compressor stations at startup and five natural gas delivery points in Alaska.
"An Alaska pipeline will bring huge economic benefits to the state of Alaska, its people and its producers," said Hal Kvisle, president and chief executive officer of TransCanada. "And TransCanada is excited by the opportunity to take on this important role."