Friday, October 3, 2008

TransCanada Alaska Project on Despite Natgas Price

By Frank Pingue (LINK)

TORONTO, Oct 2 (Reuters) - TransCanada Corp (TRP.TO: Quote, Profile, Research, Stock Buzz) said on Thursday the slide in natural gas prices does not dampen the outlook for its proposed Alaska gas pipeline, which would deliver natural gas to U.S. markets from Alaska's North Slope.
TransCanada Chief Executive Hal Kvisle told reporters after a Toronto speech that natural gas prices often hit their lowest level of the year around September and October before turning around during the winter months.

"The commodity price is always a big concern and a big risk on a project like (Alaska) but I still don't think we're in an environment of falling natural gas prices," said Kvisle. "The real comparison is what was the bottom in the gas market this year versus what it was a year ago, and we're actually up a bit over a year ago."

The price of natural gas fell as low as $7.43 on Thursday, which is off considerably from the $13.69 reached in July, but comfortably above the 2007 low of $5.19 touched in September.

In August, TransCanada won approval from Alaskan lawmakers to construct a 1,700-mile (2,700-km) line to an existing pipeline hub in Canada that would send about 4 billion cubic feet of Alaska natural gas a day to U.S. markets.

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