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Mackenzie two years away, says possible equity partner in line
If it ever proceeds, the start of construction on the Mackenzie Gas Project is at least two years away, says one of the possible equity partners in a Mackenzie Valley pipeline.
“Gas won’t be flowing any time soon, nor will the significant long-term benefits” start reaching aboriginal owners, Bob Reid, president of the Aboriginal Pipeline Group told a Calgary conference March 4.
The APG has rights to a one-third ownership stake in the pipeline on behalf of Native communities along the pipeline right of way provided it can secure volumes over and above those provided by the MGP anchor owners, Imperial Oil, Shell Canada, ConocoPhillips Canada and ExxonMobil Canada.
But he rated as “dismal and very disappointing” the length of time being taken by the Joint Review Panel, appointed to study the environmental and socioeconomic impacts of the project.
Because of the drawn-out process he said Canada’s National Energy Board is unable to hear final arguments, while the co-venturers must apply for hundreds of land and water permits.
However, Reid underscored the importance of the MGP, noting that the 6 trillion cubic feet of Mackenzie Delta gas owned by the proponents “could serve every residential home in Canada for a period of 10 years.”
Build before Alaska line Like all other backers of the MGP and the Canadian government, Reid said it is vital the MGP is built before any pipeline from Alaska to the Lower 48.
Otherwise, he said it would be cheaper for Arctic producers to expand the capacity of an Alaska pipeline if that project was completed first than it would be to build an entirely new Mackenzie pipeline.
If Alaska is out of the blocks first, “Mackenzie will be put on the shelf for a very long time,” Reid said.
Alberta Premier Ed Stelmach told the same Arctic gas conference that the northern resources will be in high demand once the economy recovers.
“As the various stimulus programs we keep hearing about begin to kick in, energy demand will grow,” he said. “Prices will rise and the need for new supply will become stronger.
“Massive reserves like Arctic gas and Alberta’s oil sands will be more important than ever before,” Stelmach said.
He also said Alberta’s gas hub has enough capacity to handle gas from Alaska and the Mackenzie Delta and deliver that production to the heart of the U.S. market.
In addition, he said Arctic gas will also provide feedstock for Alberta’s petrochemical sector, which is “important to Alberta’s future and really to Canada’s future.”
—Gary Park
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