The Alaska Gasline Inducement Act (AGIA)
The Alaska Gasline Inducement Act (AGIA) was enacted into law by the State of Alaska in May 2007. Its purpose is to expedite the development of a natural gas pipeline that:
- Facilitates commercialization of North Slope gas resources in the state.
- Promotes exploration and development of Alaska’s oil and gas resources.
- Maximizes benefits to the people of the state from the development of oil and gas resources.
- Encourages oil and gas lessees and other persons to commit to ship natural gas from the North Slope to a gas pipeline system for transportation to markets in Alaska or elsewhere
After a competitive bid process and a thorough public and legislative review, TransCanada was selected by the state in August 2008 as the exclusive recipient of the AGIA license. The license was formally signed and issued to TransCanada in December 2008. In June 2009, ExxonMobil joined with TransCanada to advance the AGIA-licensed project. For further details on the alignment agreement between TransCanada and ExxonMobil, view the Alignment Summary [.pdf].
AGIA establishes mutual commitments and responsibilities between the State of Alaska and the AGIA licensee. Licensee commitments include:
- Meeting specific deadlines for conducting an open season.
- Filing a Certificate of Public Convenience and Necessity permit application with the U.S. Federal Energy Regulatory Commission by a specific deadline.
- Providing an opportunity for a minimum of five in-state natural gas delivery points.
- Conducting additional assessments of potential demand for the pipeline's use at least every two years.
- Developing a plan to train and hire Alaskan businesses and workers.
In exchange, the State of Alaska has its own set of commitments and responsibilities, including reimbursing a portion of the project's qualifying expenses.
Read the latest progress report on the Alaska Pipeline Project...
For more information about AGIA, visit the State of Alaska's AGIA website.