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Canadian government awaits ‘concrete’ pipeline submission
Gary Park
The Canadian government is ready to consider some financial support for a Mackenzie Valley gas pipeline — but first it wants to see a proposal from the aboriginal backers, said Indian Affairs Minister Robert Nault.
For months, native and government leaders in the Northwest Territories have been accusing the federal government of dragging its feet on pipeline assistance and demanding C$60 million in federal money to secure a stake in the C$3 billion project.
But Nault told reporters Feb. 28 that he has “yet to see a concrete plan.”
The Mackenzie Valley Aboriginal Pipeline Corp. has said it needs loan guarantees if it is to have any hope of negotiating shipments of up to 500 million cubic feet per day from Mackenzie Delta producers, opening the door to one-third aboriginal ownership of the pipeline.
Nault said he has told the aboriginals the government is open to proposals, but also wants to have a plan that outlines the economic benefits to First Nations and the citizens of the region. Geared up for approvals Although he has previously indicated that loan guarantees are out of the question, he did not reject outright a review of whatever Mackenzie Valley Aboriginal Pipeline submits.
Nault said it’s not the government’s policy to take an equity position in projects of the pipeline’s magnitude.
On the other hand, he described the project as an important part of Canada’s “long-term strategy for energy security” and gave a high priority to aboriginal participation in the development.
Given the billions of dollars the government has spent settling aboriginal land claims, Nault said “it’s time to get a return on our investment.”
Noting the government is “geared up and ready to go,” he said his department has been working for 18 months to develop a comprehensive regulatory process that could see pipeline approvals issued within 24 to 30 months of an application being filed.
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