TransCanada official: Early interest in Alaska pipeline plan; bids could come at last minute

TransCanada: Early interest in AK pipeline plan

JUNEAU, Alaska — A TransCanada Corp. official said Thursday he expects down-to-the-wire bids to come in this summer as the company talks with potential shippers for its proposed natural gas pipeline in Alaska.

Tony Palmer, TransCanada’s vice president for Alaska Development, said that the project is likely to see bids in the last day or two of the open season, the three-month-long period when shipping commitments are sought.

TransCanada’s open season started barely two weeks ago and it set to run through July.

Palmer said there have been ongoing discussions with “a number” of potential shippers — some predating the April 30 open season start — and early signs have been positive. But he says if bids come back conditioned, it could be months — possibly until year’s end — for the company to resolve issues within its control and to determine whether the open season was successful.

TransCanada is working with Exxon Mobil Corp. to advance a pipeline; estimates of its cost have run from $20 billion to $41 billion, depending on the route. TransCanada successfully bid for a state pipeline license and the promise of a $500 million reimbursement under the Alaska Gasline Inducement Act.

Palmer said the project faces a number of challenges, from securing financing and regulatory approvals to attracting customers and having BP PLC and ConocoPhillips — the other major North Slope players — sign on as shippers or partners.

BP and ConocoPhillips are currently part of a competing project that plans to move to open season later this year. There’s widespread agreement, though, that there’s only room for one major pipeline to move natural gas from Alaska’s North Slope to North American markets.