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Vol. 14, No. 25 Week of June 21, 2009
Providing coverage of Alaska and northern Canada's oil and gas industry

Key players in MGP

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Itís straightforward enough figuring out who owns what in the three anchor gas fields underpinning the Mackenzie Gas Project.

From there, the lines can get a bit tangled.

The Mackenzie Producers Group controls 5.8 trillion cubic feet of proven reserves on the Mackenzie Delta and is the driving force behind the proposal that got pulled off the shelf almost a decade ago.

Imperial Oil (owned 69.6 percent by ExxonMobil), is the lead player, with estimated marketable gas reserves of just over 3 tcf in the Taglu field, discovered in 1971.

Shell Canada is outright owner of the Niglintgak field, discovered in 1973, with marketable reserves estimated at 970 billion cubic feet.

ConocoPhillips Canada, with 75 percent, and ExxonMobil Canada, with 25 percent, jointly own the Parsons Lake discovery of 1972, with estimated marketable reserves of 1.8 tcf.

Sharing a spot among the co-venturers is the Aboriginal Pipeline Group, which could represent six aboriginal regions along the pipeline right of way, and holds an option to take up to a one-third equity stake if it is able to deliver incremental gas volumes from independent explorers in the Mackenzie Delta.

Up to 1.2 bcf a day

Current plans before regulators point to combined initial volumes of 830 million to 1.2 billion cubic feet per day, with design capacity for 1.9 bcf per day.

TransCanada is the front-runner to build and operate the main gas line from the Delta to northern Alberta (Enbridge is viewed as a contender to build and operate a natural gas liquids pipeline to its existing crude oil line from Norman Wells to northern Alberta).

TransCanada has contributed upwards of C$85 million to help the APG play its role in the regulatory process.

If the pipeline proceeds, the APG is committed to repaying that loan, while TransCanada has an option to obtain up to 5 percent of the pipeline if the anchor producers choose to reduce their overall share.

If any of the producers sells or reduces its ownership interest in the pipeline, TransCanada has first right to acquire 50 percent of such opportunities, with the APG and other owners sharing the remaining 50 percent.

The full details of various other options available to the APG, TransCanada and the owners are available on the MGP Web site at www.mackenziegasproject.com.

óGary Park



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