ExxonMobil, TransCanada JV to build $26 billion Alaska pipeline

15 June 2009

ExxonMobil Corp., the world's largest petroleum company and TransCanada Corp., a leader in the field of energy infrastructure in North America have reached an agreement to jointly build the Alaska gas pipeline costing $26 billion in order to commercialise Alaska's North Slope natural gas resource, a TransCanada press release said on Saturday.

The 2,760-km pipeline would transport natural gas from Alaska's rich gas fields to consumers in Canada and 48 US states. The pipeline is designed to meet the future needs of clean energy in the whole region apart from generating huge revenues, employment and business opportunities.

The 4.5 billion cubic feet per day, 48-inch gas pipeline from Prudhoe Bay on the North Slope to Alberta, Canada is expected to become operational by 2018.

Defending the huge project, Alaska governor Sarah Palin said the energy resource is needed and will contribute to the US economy, environment and national security.

She said anyone who think that US doesn't need this pipeline is ''absolutely short sighted'' because demand for natural gas is on the rise and probably by 2030, we'll see a 40 per cent increase in demand for gas and it is an alternative for America to not to rely on foreign sources of energy.