A Calgary company has come one step closer to having the exclusive right to build a natural gas pipeline from northern Alaska.

The application from TransCanada Alaska Co., LLC/Foothills Pipelines, Ltd., a subsidiary of Calgary-based TransCanada Corp., was the only one that met all the state's requirements for building the North Slope pipeline, Alaska Gov. Sarah Palin said Friday at a new conference in Anchorage, Alaska.

"We have long stated that it only takes one good application. We're thrilled to have a project sponsor willing to build a pipeline on terms that benefit all Alaskans," Palin said.

Five applications were submitted for the exclusive right to build the 5,600-kilometre pipeline, which is expected to cost more than $20 billion US. The line, if completed, would transport gas from the state's North Slope, through the Yukon, British Columbia and Alberta to markets in the U.S. Midwest.

Companies had until Oct. 1 to submit proposals to the state for construction and operation of the pipeline.

TransCanada's application will now be evaluated by the state government to determine whether it maximizes the benefits to Alaskans and merits issuance of the exclusive licence.

As part of that evaluation, a 60-day public-comment period on TransCanada's application opens Saturday.

Afterward, if the state determines that the application meets those requirements, it will be forwarded to the Alaska legislature for approval.

As the winning bid, the company could receive, among other incentives, a $500-million US matching grant from the state.

Applications were submitted under the Alaska Gasline Inducement Act, or AGIA, passed by the state in May 2007.

The other four applications were from the Alaska Gasline Port Authority, AEnergia LLC, Sinopec ZPEB and Alaska Natural Gasline Development Authority.

Those companies were notified Friday that their applications did not meet the requirements set out by the law, and will not be evaluated further.

With files from the Associated Press