NEWS BULLETIN

January 20, 2009 --- Vol. 15, No. 9January 2009

Mackenzie line gets boost from Canadian government

The Mackenzie Gas Project is alive and kicking again, brought to life by word that the Canadian government has made a formal offer of financial support and is eager to work with the Obama administration on a joint-strategy for developing Arctic gas in Alaska and Canada.

Just when hopes for the MGP seemed to be crumbling, Environment Minister Jim Prentice, the cabinet minister responsible for northern pipeline development, issued a statement Jan. 19 that a proposal has been delivered to the MGP proponents.

He said it includes a federal contribution to infrastructure and pre-construction costs and a “sharing of risks and returns.”

The government has previously rejected the idea of a public ownership stake in a Mackenzie Valley pipeline, or direct subsidies.

The MGP is a “key priority of the government’s Northern Strategy and is central to realizing the full economic and social potential of Canada’s North,” Prentice said.

He told reporters today that the offer is a “responsible” one to break the regulatory logjam and proceed with a project that is “very important to our country and the North, for our energy future and energy security.”

See full story in the Jan. 25 issue of Petroleum News, which will be online at noon Friday, Jan. 23, at www.petroleumnews.com.


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