Arctic road could benefit Mac pipeline

Northwest Territories Premier Joe Handley is campaigning for a highway to the Arctic Ocean, claiming that C$700 million investment would accelerate construction of a Mackenzie Valley pipeline by at least one year and curb some of the anticipated hike in the Mackenzie budget.

Following a meeting with federal Indian Affairs and Northern Development Minister Jim Prentice, Handley told the Financial Post there is new urgency to approve what he calls the “Road to Resources.”

The idea has struggled to take flight for years, but the northern leader now believes the Mackenzie project is one of his chances to get serious attention for the undertaking.

Permanent road would extend construction season

He said a permanent road would extend the construction season beyond the winter season when the ground is frozen and can support the weight of heavy equipment.

Handley estimates that could see the pipeline built in 12 to 18 months, rather than the three winters that are currently planned.

He said Mackenzie operator Imperial Oil and its partners will not build the pipeline (now expected to cost as much as one-third more than the latest official prediction of C$7.5 billion) if the costs and challenges go beyond what they feel is a reasonable risk. … One way of overcoming a big hurdle for them would be to get on with a big piece of public infrastructure.”

Prentice is not totally sold on the concept that an Arctic highway would have a major bearing on Mackenzie costs, although now that Imperial is updating the numbers it might be ready to take a fresh look at the scheme.

—Gary Park