Canada issues Mackenzie-Beaufort nominations call

Whether Canada’s frontier explorers see the initial round of regulatory backing for the Mackenzie Gas Project as a shot in the arm for eventual development of Arctic oil and natural gas is being put to an early test.

The Canadian government has issued a call for nominations in both the Beaufort Sea-Mackenzie Delta and Central Mackenzie Valley regions, setting a Jan. 28 deadline for requests.

Based on the response, Indian Affairs and Northern Development Minister Chuck Strahl will decide whether to include postings in a call for bids which would be issued in February.

The postings range from a minimum 640 acres to 204,800 acres.

On heels of JRP report

The call was issued right on the heels of the Joint Review Panel report that gave solid backing to Mackenzie Gas Project plans to develop Mackenzie Delta gas reserves, seen by many as the essential first step toward opening a new energy basin.

The three-year delay in the JRP’s work has been blamed by many industry leaders for causing a virtual shutdown of northern exploration activity in recent years and only limited interest in securing exploration licenses in the region.

Although the MGP has still to clear other approval phases before the partners decide whether to proceed with construction, the JRP report is reason to believe the project is still drawing breath.

Whether that translates into an industry desire to make fresh work commitments to Canada’s North is another matter.

—Gary Park