Yukon, Northwest Territories team up to advance oil, gas options

Gary Park

Petroleum News Calgary correspondent

A new spirit of cooperation between the Yukon and Northwest Territories has been reinforced in an agreement to explore options for oil and natural gas development in Canada’s North.

The two governments signed the pact Dec. 5 that opens up a wide range of possibilities from access to a Mackenzie Valley gas pipeline to development and management of the Beaufort Sea.

Yukon Energy, Mines and Resources Minister Archie Lang said the cooperative measures will help his government achieve its commitment to “help Yukoners receive access to employment, training and business opportunities from oil and gas and pipeline development in both territories.”

Northwest Territories Resources, Wildlife and Economic Development Minister Jim Antoine said the “historic” agreement underscores a renewed cooperation and mutual understanding.

It comes after a period of tense, often fractious relationships as both governments advanced their case for the Mackenzie and Alaska Highway pipeline proposals.

Now Lang said the Yukon and Northwest Territories want to ensure northerners benefit, regardless of which pipeline is built first.

Antoine said there is a “solid commitment from which we will work to maximize the benefits of northern development for all of our residents.”

The agenda includes developing an action plan to identify options and opportunities in several oil and gas areas and sharing geological information.

Gaining access to the Mackenzie pipeline will help the Yukon promote exploration of its promising northern prospects, while the Beaufort Sea has resurfaced on the horizon, with Devon Canada and Chevron Canada Resources both indicating they are interested in resuming exploration of the shallow waters after a long hiatus.

Meantime, the Northern Gas Project Secretariat has opened an office in Yellowknife, the Northwest Territories capital.

With a staff of seven under executive director Brian Chambers, the office will play a key role in the environmental impact assessment and regulatory review of the Mackenzie project, including notifying the public on how and when to become involved.