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Imperial mum on Mac gas project numbers
Gary Park For Petroleum News
Partners in the Mackenzie Gas Project haven’t put a price tag on the venture since their C$16.2 billion estimate three years ago — at that time a C$8.7 billion hike from when they filed an application with regulators in October 2004.
Since then, in the absence of anything firm from lead participant Imperial Oil, no guides have been provided, other than a September 2007 statement by ExxonMobil Chief Executive Officer Rex Tillerson in a conference call who said updated costs could result in a higher price tag for the project.
“There is no question the cost has gone up, but we don’t have a number that I have high confidence in,” he said.
But don’t hold your breath in hopes of some new estimates from Imperial.
It has sharply rebuffed demands by Alternatives North, a social justice coalition in the Northwest Territories, to provide new indications of the economic feasibility of the Arctic gas venture.
The Yellowknife-based organization has asked Canada’s National Energy Board to force the proponents’ hand, allowing everyone to decide whether the MGP makes sense based on the outlook for natural gas markets and the economic feasibility of the pipeline.
Group says public at risk A spokesman for Alternatives North said Imperial stands to make money from the MGP, “but the public is also at risk from this project in terms of the environmental and socioeconomic effects.”
“We know that the proponents are also attempting to get subsidies from the (Canadian) government, so that’s why there is a need for an independent regulator to look at all of these factors,” he said.
The spokesman said the MGP partners are required to provide up-to-date information about their proposal and the NEB must consider the gas markets in deciding whether to approve the project.
Proponents not worried about gas prices, impact of shale Imperial spokesman Pius Rolheiser was reported by the Canadian Broadcasting Corp. as questioning whether Alternatives North “has provided any valid reason for the NEB to require us to file an updated market demand report” when the MGP’s gas price forecasts are confidential.
He said the proponents are not worried about changes in the gas market since 2007, particularly the impact of shale gas in North America and the prospect of an Arctic gas pipeline from Alaska.
Regardless of that competition, there would still be room in the market for the Mackenzie Valley pipeline, Rolheiser said.
He said decisions on whether the project is economically feasible should ultimately be made by the partners.
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