What others are reporting on AGIA

Newspapers around the globe reported on Governor Sarah Palin's decision to choose TransCanada for a $500 million subsidy and an exclusive contractual arrangement to possibly build an Alaska Natural Gas Pipeline.

Here is what a few of them reported in their Friday issues:

Calgary Herald:

Tony Palmer, TransCanada's vice-president of Alaska development, said in an interview that Palin confirmed TransCanada's plan under the gas inducement act maximizes value for the state.

But he said the project will not get to the financing and construction stage without shipping commitments from the largest reserve owners and, failing that, without support for a bridge shipper concept that TransCanada has approached Washington about. Such a concept would see governments guarantee shipper commitments early on, he said.

New York Times:

State Senator Bert Stedman, vice chairman of a special Senate committee involved in the review, said that market conditions would ultimately shape the way the pipeline is developed and that Ms. Palin’s plan appeared to take a great risk by offering so much in incentives to TransCanada.

Mr. Stedman said the company would have no guarantee that producers that own rights to the gas on the slope would commit to using the TransCanada pipeline.

Fairbanks Daily News- Miner:

There’s a lot that isn’t understood yet by the public and, probably, by many legislators. And there are lots of comments that have been made — and that will be made — that aren’t quite correct. We saw it Thursday, in a news release from the governor, no less.