12 June 2009 19:55 [Source: ICIS news]
WASHINGTON (ICIS news)--TransCanada said on Friday that its partnership with ExxonMobil is a significant step toward the long-planned $26bn (€18.5bn) ?xml:namespace>
Tony Palmer, TransCanada vice president for
He said that ExxonMobil’s participation puts to rest uncertainties raised by
“Brining ExxonMobil in on this certainly answers that question,” Palmer said.
He said that the energy giant’s participation also gives assurance to other producers that a major player is committed to the project and is confident of its fulfilment.
That level of confidence among natural gas producers also advances the project, Palmer said, because it increases the likelihood of broader participation by other energy companies when TransCanada begins its “open season” solicitation for gas producers who may want to provide natgas to the pipeline when it is completed in 2018.
The open season will begin in the second quarter next year and will close in July 2010. By July, gas producers must decide whether they will commit to supply product to the pipeline project.
Third, said Palmer, the deal with ExxonMobil “brings a pre-eminent player for the gas treatment part of the project, an area where we do not have expertise”.
The 1,700-mile (2,735 km) pipeline project - which will connect gas fields in Prudhoe Bay on
When completed, the initial
That is seen as a significant volume of additional supply for the
The prospect of additional and high-volume supply is a critical factor for the industry, especially as developing
TransCanada, which already operates some 36,500 miles of gas pipelines in North America, was awarded the Alaska pipeline project license by the state government in December last year.
($1 = €0.71)
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