Putting an end to the long-running scuffle over the building of the $26 billion Alaskan natural gas pipeline, the two rivals - TransCanada Corp and Exxon Mobil Corp - have worked out an agreement to combine their efforts in the venture.

As per the terms of the deal, disclosed to reporters by TransCanda VP Tony Palmer in a conference call, though TransCanada will retain a majority interest in the gas pipeline, it will work in conjunction with Exxon with regard to sharing all aspects - technical, regulatory and financial - of the mega project.

Palmer also said that through the 2010 open season - which comprises the process for seeking interest from shippers - the two companies have agreed upon increasing development spending from $83 million to $150 million.

According to Marty Massey, the US joint interest manager of Exxon Mobil, both TransCanada and Exxon will persist with their ongoing efforts for soliciting support for their project from BP Plc and ConocoPhillips, which are planning a contending pipeline.

The TransCanada-Exxon deal to work together has been appreciated by the Alaska Governor Sarah Palin. In a statement to the effect, Palin said that "the alignment provides a mutual benefit by bringing together the key skills of two world-class companies to effectively advance a project of maximum value and mutual benefit."