Real Progress
The Alaska Pipeline Project must complete numerous milestones in order to bring a completed project into operation. The project needs to fulfill regulatory requirements, acquire the right-of-way to put the pipeline in the ground, secure customers to ship gas and fill the pipeline, build the pipeline on time and on budget and operate it when completed. While the project is at an early stage of development, much has been accomplished and milestones are being progressively achieved.
Strong Alliance: The development of major natural gas pipelines - especially one of this magnitude - requires exceptional management expertise. TransCanada and ExxonMobil, with the support of the State of Alaska, form a powerful team. The implementation of the project under the AGIA process has built the synergistic alliance that offers the most efficient path for development of Alaska’s North Slope natural gas resources.
Regulatory Compliance: The Alaska Pipeline Project has steadily been meeting the schedule required by AGIA. The project has committed to fulfill its AGIA obligation by initiating its first open season on time in 2010 and by continuing to advance the project, including the progression of technical, environmental and regulatory work and filing with the Federal Energy Regulatory Commission in 2012 an application for review and approval to proceed.
Right of Way: TransCanada holds a construction certificate and has secured land rights from the Canadian government for a substantial portion of the pipeline included in the Canadian section of the pipeline corridor. That means the project has secured the essential government permit for approximately 60 percent of the total length of the pipeline route. This corridor has been secured by a treaty between Canada and the United States and supporting legislation to enable pipeline development. The project has also opened discussions with stakeholders along the pipeline route, including Alaska Native and Canadian First Nations and aboriginal groups.
Technical, Engineering, Project Planning: A team of more than 110 experts from TransCanada and ExxonMobil, supported by world class contractors, is preparing the extensive engineering and commercial work necessary to conduct the first open season ever to be held for development of North Slope natural gas. The engineering design includes facility specifications and construction plans, including infrastructure and logistics, along with cost and schedule estimates. The cost and schedule estimates, along with commercial terms, define the transportation tariffs. All these elements make up a package that will be presented for the consideration of potential shippers during the open season in 2010.
Customers: Alaska Pipeline Project commercial experts have produced a balanced offering to present to potential customers. If shippers find the offering commercially attractive they will offer commitments and conditions that can form the basis for project financing and further project advancement.