TransCanada looks to Alaska for growth

Article Excerpt

TransCanada Corp. $40 (Toronto Symbol TRP Conservative Growth Portfolio, Utilities sector; Shares outstanding: 578.0 million; Market cap: $23.1 billion; SI Rating: Above average) has received approval to build a pipeline that would transport natural gas from northern Alaska to the Alberta-British Columbia border. From there, TransCanada would ship the gas through existing pipelines to markets in Canada and the continental United States. The project could take a decade to complete, and cost $26 billion. That’s 13% more than TransCanada’s market cap. However, Alaska has huge natural gas reserves. TransCanada would probably bring in partners to cut its costs. As well, the company expects to receive $500 million U.S. in assistance from the Alaskan government. TransCanada is a buy. buy…