ExxonMobil invests $26B in TransCanada Alaska pipeline

ExxonMobil Corp announced today a massive $26 billion investment with TransCanada Corporation for the US Alaska natural gas pipeline project.

Upon completing, the project would provide access to 36 trillion cubic ft of natural gas in the Arctic region. The pipeline would provide up 4-4.5 billion cubic ft in daily natural gas.

 The companies estimate the pipeline would be completed by 2018.

Sarah Palin said, “ExxonMobil has made a strategic decision [with TransCanada and Alaska] that I believe makes good sense,”

The investment in Alaska comes about 20 years after the Exxon Valdez disaster.

ExxonMobil manager Marty Massey said to reports today that, “[working with TransCanada and Alaska] provides the best opportunity to bring together all the necessary parties to deliver a successful project,”

Under the deal, TransCanada will retain a controlling stake, though both companies will be responsible for all financial, regulatory and technical responsibilities.

ExxonMobil shares opened down today and are currently trading half a percent down to $73.68 in mid-day trading. The response likely comes over concerns with newer oilfields in the south U.S. that could threaten the Alaska pipeline profitability because of higher transportation costs from the Arctic.

TransCanada shares are up $0.54 to $34.22 in mid-day trading as well.