contribute $500 million to fund startup costs of an overland route, the AGPA is now advocating a "Y" route which would first go to Valdez and later build a second fork toward Canada. Alaska Gasline Inducement Act On July 3, 2007, the Governor of Alaska Sarah Palin announced that the State of Alaska was ready to receive applications to build a pipeline within the framework of the Alaska Gasline Inducement Act (AGIA). On January 4, 2008, a proposal by TransCanada was selected. Four other proposals were submitted: By Sinopec, AEnergia, the AGPA, which proposed a liquified natural gas project, and the Alaska Natural Gas Development Authority. On January 5, 2008, Palin announced that the Canadian company TransCanada Corp., was the sole AGIA-compliant applicant. On August 27, 2008, Palin signed a bill into law giving the state of Alaska authority to award TransCanada Corp. 500 million dollars in seed money and a license to build and operate the $26-billion pipeline to transport natural gas from the North Slope to the Lower 48, through Canada. The license is not a construction contract, and federal energy regulators must approve the project before it can go forward. On December 5, 2008, the AGIA license, jointly awarded to Foothills Pipe Lines Ltd. and TransCanada Alaska, LLC, was signed in Fairbanks. The pipeline proposed by TransCanada would run from the North Slope to Calgary in Alberta. It is expected to cost US$26 billion and to be operational by 2018. In 2014, the agreement between Alaska and Transcanada was cancelled in the light of substantially lower prices for natural gas and increased use of extraction technology that has markedly boosted supply, making the pipeline arrangement uneconomic. The 500 million dollars in seed money was forfeited by the State legally to Transcanada under a cancellation clause for front end engineering and design work completed. Denali proposal Outside of the AGIA process, authorities were evaluating a separate proposal issued by Denali – The Alaska Gas Pipeline LLC, a joint venture of ConocoPhillips and BP. ExxonMobil was invited to participate in the project. Also Enbridge, Royal Dutch Shell and Gazprom had shown interest to join this project. However, on 17 May 2011 Denali announced that it ends developing the project due lack of interest from potential customers. The project foresaw a pipeline with a capacity of 41 billion cubic meter (bcm) of natural gas per year down the Alaska Highway