The Alaska government will put up $500 million to get its stalled pipeline project moving again, Governor Sarah Palin told a Washington, D.C., news conference Wednesday.

The money will be given to the company that submits the best application for a pipeline to carry the state's North Slope gas to market, Palin said.

"A capital contribution offered up by the state to help progress this project is going to be necessary," she said.

"We believe capital gets us toward that required certificate that is needed for any successful applicant in order to build the line."

The payment is part of the gasline inducement act that Palin plans to introduce in the state legislature Friday. It will set up the process for interested pipeline builders to apply for the permit to build the pipeline.

The applicants will be judged on their ability to complete the project, to deal with potential cost overruns and to meet their projected timelines, she said.

The state also wants applicants to map out plans to train and hire Alaskan workers, and also provide Alaskans with reasonably-priced gas.

The state hopes to be able to start accepting applications by June or July, she said.

Palin would like to issue the licence to the successful company by April 1, 2008, with field work beginning shortly after that.

The North Slope contains 35 trillion cubic feet of proven gas reserves and Palin believes there could be much more than that.

Several options have been discussed in the past including building a pipeline along the Alaska Highway through Canada or building a line to an Alaskan port where a liquid natural gas facility would be constructed.