A Mackenzie Valley gas pipeline could yield revenues of C$53.2 billion over its operating life says a new report by the TD Bank.
But the bank underlined what is well known, that the project has numerous regulatory and environmental hurdles to clear, including two lawsuits filed by the Deh Cho First Nations trying to stall the environmental review.
TD economist Derek Burleton told a business and investment conference in Yellowknife, Northwest Territories, in mid-September that if the pipeline proceeds and three diamond mines are operating, the Northwest Territories will base half of its economy on the resource sector.
That carries the added risk of failure if volatile commodity prices falter, he said.
Burleton urged the 450 delegates to put a “real focus on establishing an atmosphere of business so non-resource industries (such as tourism, hydroelectricity and telecommunications) can flourish.”
He said the Northwest Territories could also introduce a sales tax, in addition to the current Goods and Services Tax on store-bought goods, without choking off growth.
Burleton said the territory should also press the Canadian government to relax a chokehold that prevents it from carrying more than C$300 million in debt and limits its ability to build infrastructure projects.
Outlook upbeat
For now, the outlook for the Northwest Territories has never been more upbeat as the region leads Canada in per-capita income and employment and is likely to retain the top rung until at least 2006.
In addition, two-thirds of aboriginal land claims have been settled, giving an added lift to the investment climate.
Separately the major regulatory filings for the Mackenzie pipeline have been moved to October or beyond.
Bob Reid, president of the Aboriginal Pipeline Group, a partner in the Mackenzie Gas Project consortium, told The Canadian Press the filings will “likely be sometime during October.”
He had told an earlier Yellowknife conference that the documents would likely be delivered to regulators in September.
“It’s coming and I know the project team is working very, very hard to get it filed as soon as possible,” he said.
Although viewing the Deh Cho court action as “unfortunate,” he said it would not stop the proponents from entering the regulatory phase.
