Knoxville, Tennessee (Platts)--23Jul2008

Alaska's House of Representatives late Tuesday approved a bill
that would grant TransCanada an exclusive state license to build a pipeline
carrying North Slope natural gas to US and Canadian markets.

The 24-16 vote on bill HB 3001 would grant TransCanada some $500 million
in state subsidies under the Alaska Gasline Inducement Act. The pipeline,
proposed to stretch 1,715 miles from Prudhoe Bay to Alberta and carry up to
4.5 Bcf/d initially, is expected to cost more than $30 billion.

The bill must still be approved by the state Senate before an August 2
deadline. In the House vote, 16 Democrats and 8 Republicans voted in favor,
while 15 Republicans and one Democrat voted against.

Producers BP and ConocoPhillips have partnered in a competing pipeline
project, called Denali. The producers did not seek subsidies for their project
under the AGIA.

--Stephanie Seay, stephanie_seay@platts.com