Energy giant ConocoPhillips has been criticized by Sarah Palin, the governor of Alaska. In a letter to the firm's CEO, she said that the firm's proposal to build a natural gas pipeline falls short of the state's objectives, according to Reuters, which received a copy of the governor's letter.
ConocoPhillips’s bid was rejected because it asked for fixed state taxes on the project. The proposal for the venture was presented outside of the Alaska Gasline Inducement Act (AGIA), reported Reuters.
Reuters noted that TransCanada was selected as the sole finalist to receive state sponsorship under the AGIA process.
The state reportedly initiated the process after failing to progress the development of the North Slope, which is estimated to hold around 35 trillion cubic feet of proven gas reserves.
TransCanada’s proposal will use its Alberta system to bring the gas from Alaska to eastern Canada, the US Midwest, northeast and California, according to Reuters.