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Backing for Mac project Conoco sees gas recovery; Canada supports APG stake; Deh Cho may be in Gary Park For Petroleum News
From the industry, government and First Nations fronts, the Mackenzie Gas Project got a boost in the last month.
Kevin Meyers, president of ConocoPhillips’ Canadian division, told a news briefing March 27 that when gas demand makes its inevitable recovery, the need for pipelines from Alaska and the Mackenzie Delta will be back on the table, with a Mackenzie pipeline likely to proceed first because it’s at a more advanced regulatory stage.
He said that once regulatory work on environmental and socioeconomic impacts, and negotiations with the Canadian government on a fiscal regime are completed, construction can begin.
“We still believe the long-term gas price will sustain an economic (Arctic) project,” he said. “It’s not about what you think gas prices will be in 2010. It’s your view of what they will look like in 2020 or 2030 that matters.”
Against a background of frustration over the MGP regulatory delays, Meyers said Canada has an “overall positive environment” for business compared with the U.S. and Russia, where he has also worked.
But he agreed with other critics who have called for a more streamlined approach for undertaking projects such as the MGP, urging a “macroscopic” emphasis in the regulatory process.
Canada supports APG stake Meanwhile, Canada’s Indian Affairs and Northern Development Minister Chuck Strahl said his government will continue to support a partnership stake in a Mackenzie Valley pipeline for the Aboriginal Pipeline Group. He said funding of C$3 million will be provided over one year to assist the APG to continue working on the economic benefits arising from the project.
The APG, representing all aboriginal regions along the pipeline right of way except the Deh Cho First Nations, hopes to secure enough producer support outside of the main MGP group to take a one-third equity stake in the pipeline.
Strahl said the federal government is committed to ensuring that aboriginal people in the Northwest Territories can “benefit from the economic opportunities created by the proposed pipeline.”
“This is a concrete step our government is taking to ensure that northern communities are central to the development (of the MGP) and will benefit through the creation of community revenues, new jobs and new aboriginal business contracts,” he said.
Deh Cho still outside APG Chairman Fred Carmichael welcomed the continuing government financial backing for an “important economic initiative for Canada and for the North.”
Another hint that the Deh Cho may soon join APG came during an economic forum which discussed separating politics and business and advancing economic development in the region.
Cynthia Cardinal James, chair of the Deh Cho Economic Corp., which embraces 13 communities, said the separation process is “in the interest of better business,” by separating economic committees from the politics of the Deh Cho First Nations.
Grand Chief Jerry Antoine said in a release the forum was a much needed exercise that provided an opportunity to reset the First Nations economic vision.
The next forum in June will advance the process and study governance structures.
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