Anchorage (Platts)--20May2008

Alaska Governor Sarah Palin will release her decision on endorsing a
proposal by TransCanada to build an Alaska natural gas pipeline Thursday
morning Alaska time, the governor's office announced Monday.

Palin is expected to approve TransCanada's application under the state's
Alaska Gasline Inducement Act (AGIA) because she has called a special session
of the state Legislature to begin June 3 to consider the recommendation.
Palin also said she will also release an analysis of a proposal by North
Slope producers BP and ConocoPhillips to build a gas pipeline outside the
state's AGIA process, according to the statement.

The AGIA provides incentives, including a $500 million state grant to
assist an independent pipeline company like TransCanada in building the
pipeline.

BP and ConocoPhillips have meanwhile started work on their own proposal,
which requires no state subsidy or incentives and have committed $600 million
in engineering and environmental work needed to conduct a pipeline open season
in 2010.