Alaska Pipeline Project announces nonbinding open season

The Alaska Pipeline Project (APP), a joint effort between affiliates of TransCanada Corp. and ExxonMobil Corp., will hold a nonbinding open season to solicit interest in shipping on the potential natural gas pipeline system to move Alaska North Slope gas to market. The solicitation will identify parties interested in making future capacity commitments on a pipeline system from the ANS to either an LNG terminal at a tidewater location in south-central Alaska or to an interconnection point near the border of British Columbia and Alberta.

The open season will occur under the Alaska Gasline Inducement Act, which requires TransCanada, as AGIA licensee, to assess market interest every 2 years after its first open season. Either APP routing will provide a minimum of five delivery points for local natural gas connections in Alaska.

Alaska Gov. Sean Parnell announced in March that the state had resolved long-running litigation with ExxonMobil and other Point Thompson field lease holders allowing development of its gas resources to proceed. He also received a letter from BP PLC, ConocoPhillips, and ExxonMobil’s chief executives declaring their willingness to work with APP on a pipeline to move gas from the ANS to an LNG export terminal (OGJ Online, Mar. 30, 2012).

The open season will run from Aug. 31 through Sept. 14.

Contact Christopher E. Smith at chriss@ogjonline.com.

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