Firms Line Up for Alaskan Pipeline

Following years in lack of interest, companies are suddenly scrambling to build a pipeline from Alaska's North Slope to markets in Canada and the US.

TransCanada Pipelines is angling for operatorship, while Canadian pipeline firm Enbridge says it plans to file an application with Alaska that will allow it to begin negotiating terms for a line stretching from Prudhoe Bay to the Canadian border. It wouldn't go ahead solo, but in partnership with other firms.

Enbridge's announcement came shortly after MidAmerican Energy Holdings -- a company owned by billionaire investor Warren Buffett's Berkshire Hathaway group -- pulled out of negotiations for a $6.3 billion project because Alaska could not give it exclusive development rights. Other companies talking with Alaskan officials include North Slope producers BP, Exxon Mobil and ConocoPhillips.

Proven North Slopes reserves are estimated at more than 35 Tcf. The pipeline, with a capacity of up to 5 Bcf/d, is targeted for completion in 2010-12.