Canadian leaders are committed to helping make the Alaska Highway pipeline a reality, two premiers said Tuesday.

Yukon Premier Dennis Fentie and Alberta Premier Ralph Klein, along with John van Dongen, B.C.'s Minister of State for Intergovernmental Affairs, threw their support behind Alaska Gov. Frank Murkowski at an Alaska-Canada Regional Summit in Anchorage yesterday.

'We all know that the price of natural gas is extremely high. That's what makes the Alaska Highway pipeline so economically feasible today,' Klein told a news conference.

The $20-billion pipeline project proposal is directed at carrying more than 35 trillion cubic feet of natural gas from Alaska's North Slope to western Canada and the United States.

Murkowski said there is likely even more gas available in other reserves that were previously unable to be tapped because of prices on the global market.

'This really marks the next advance in the development of gas reserves on the North Slope, and that is the issue of Canada and the role of the Canadian government as well as the provinces that the pipeline will go through the Yukon Territory, British Columbia and Alberta,' said Murkowski.

Last month, the governor announced a tentative deal had been reached with three producers, ConocoPhillips, British Petroleum and Exxon Mobil.

The package is now being examined by Alaska's state legislature and is hinged on oil production taxes.

'It was clear that if the producers don't feel there is a fair resolve of the production tax, well, the deal on the gas line will be off,' he said, adding the producers need a certain level of certainty.

The tax is currently being proposed at 20 per cent.

van Dongen said British Columbia will be watching the decision of the state's legislature very closely.

'That is a fundamental stage that the project has to go through,' he said.

Soon after the decision, it's anticipated the producers will be turning their attention to the Government of Canada and regulatory certainty on this side of the project.

Fentie said the Conservatives have already provided assurances they will be moving ahead with both the Alaska Highway pipeline and the Mackenzie Valley pipeline project.

'We have recently elected a new government,' said Fentie. 'A government that is business-friendly. A government that has already been clearly articulating in the public domain that they intend to make both the Mackenzie Valley project and the Alaska Highway pipeline project, one of their highest priorities to ensure regulatory certainty in an expeditious process to conclude both of these projects.'

The construction of the Alaska Highway pipeline is a 'win-win' situation for the Canadians and the Americans, said Klein.

The pipeline would have a tremendous economic impact on the provinces and territories, said Klein.

'This can turn the province (Alberta) into a province where the dependency has been on oil and gas to an energy province,' he added.

Klein said Alberta is interested in stripping some of the liquids in the natural gas for its petrochemical industry and using the initiative to explore new energy options.

With the massive amount of power needed to separate oil from the sands, this project is of extreme importance to Alberta, he said.

Klein doesn't foresee any challenges in putting the pipeline through Alberta as long as it's connected to the province's existing hub network and doesn't need to explore new route options.

In the Yukon, the Northern Pipeline Act and the protection of an existing right-of-way through the territory should make the project feasible after the federal government declares the regulatory regime, said Fentie.

In the meantime, the Yukon government is continuing to develop a pipeline strategy, work with first nations, gas producers, pipeline companies and the general public on awareness and preparedness, added Fentie.

'We will respect other jurisdictions and the roles that they play and the responsibilities they bear,' he said.

The Canadian representatives and Murkowski committed to developing a strategic action plan to facilitate efficient permitting and construction of the Alaska Highway pipeline as it moves forward. Fentie encouraged producers to do the same.

'Our four governments are committed to expeditiously advancing the project,' said Murkowski. 'In order for Alaska to maximize benefits from its gas, that gas must get to consumers in the most cost-effective manner possible.

'Our Canadian partners are a critical link in that chain. We must work together to realize the benefits of the gas pipeline project for our people.'