Aboriginal backers of Delta gas pipeline want C$90 million from government

Gary Park

The Canadian government will soon be asked to contribute about C$90 million towards the regulatory costs faced by the Mackenzie Valley Aboriginal Pipeline Corp. as it pursues a one-third equity stake in a gas pipeline from the Mackenzie Delta.

Mackenzie Valley Aboriginal Pipeline chair Nellie Cournoyea said Jan. 14 that, based on lobbying of the government, she is confident the funding will be provided.

The aboriginal pipeline corporation requires financial help as it joins the Delta producers in the “project definition” phase of gathering technical, engineering and environmental data needed for a formal regulatory application.

If the corporation is able to arrange shipping contracts of 400 million to 500 million cubic feet per day from producers operating outside the Delta consortium, it may eventually need up to C$1 billion to finance its stake in the pipeline.

A spokeswoman for the federal Indian Affairs and Northern development Minister Robert Nault said there will be no government response until the aboriginal request is received.

Economic benefits widespread

She referred to a Canadian Energy Research Institute study that estimated a standalone Mackenzie Valley pipeline would create 31,000 person-years of employment across Canada.

The institute said only 20 percent of the jobs would actually be created in the Northwest Territories and neighboring Nunavut Territory, while close to 33 percent would go to Canada’s industrial power base in Ontario and another 13 percent would land in Alberta.

Other forecasts suggest the economic benefits would include C$6 billion a year in taxes, royalties and other revenue for the Canadian, provincial and territorial governments.

That is seen as the best hope for easing the dependence of the territories on the federal government, which contributes 95 percent of Nunavut’s budget and 78 percent of the Northwest Territories.'