Thorunn Howatt
Northern News Services

Yellowknife (May 01/01) - Playing both sides has proved to be good business for Trans Canada PipeLines Ltd.

Its profits rose 15 per cent in its first financial quarter. Building either an Alaska or Mackenzie Valley pipeline is key for Trans Canada.

A new U.S. tax incentive to spur construction of a multi-billion-dollar Alaska Highway natural gas pipeline was positive for Trans Canada. The Foothills Pipe Lines proposal is owned 50/50 with Duke Energy Corp. and Trans Canada. It proposes the Alaska Highway route.

At the same time, Trans Canada also wants to build a smaller line from the Mackenzie Delta that would carry Canadian natural gas following the Mackenzie Valley. That line is proposed by a group of producers led by Imperial Oil Ltd. and an NWT-based aboriginal pipeline group. The Canadian project is considered economical.

The U.S. senate-approved tax credit is part of a sweeping energy bill aimed at giving Alaskan North Slope producers comfort in committing to a line despite the risk of falling gas prices. American producers have said the Alaskan route is still uneconomical even with the tax breaks.