With an initial forecasted capital cost of $US26 billion, the project is seen as providing a variety of benefits to Alaska and Canada, as well as to the rest of the United States, including substantial revenues, jobs, business opportunities and new, long-term stable supplies of natural gas.

“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,” said TransCanada President and CEO Hal Kvisle.

“TransCanada envisions that our combined activities with ExxonMobil, along with the support of the State of Alaska, the US 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.”

TransCanada Alaska Co and subsidiaries of Foothills Pipe Lines Ltd will remain the Alaska Gasline Inducement Act (AGIA) licensees and TransCanada will continue as the primary point of contact with the State of Alaska and the general public for this project.

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In November, 2007, TransCanada Alaska and Foothills jointly submitted an application under AGIA to build a 4.5 Bcf/d, 48 inch diameter, gas pipeline running approximately 2,700km from a new gas-treatment plant at Prudhoe Bay on Alaska's North Slope to Alberta, Canada, with an LNG option to deliver gas supplies to a liquefaction facility at Valdez.

TransCanada has moved forward with project development, which includes engineering, environmental reviews, Alaska Native and Canadian Aboriginal engagement, and commercial work.