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Canada wants Alaska Highway gas pipeline coordinator, says Nault
Gary Park, Petroleum News Calgary correspondent
The U.S. government should waste no time in appointing a lead official to propel construction of an Alaska Highway gas pipeline, said Canada’s Indian Affairs and Northern Development Minister Robert Nault.
In the interests of North American energy security, he urged Washington to bypass a proposal in its energy bill now before the U.S. Senate and immediately name a special representative or federal coordinator.
He told a conference call May 1 that the U.S. official could then work with his counterpart in Canada to “move forward with the Alaska pipeline, which is what North American needs.”
Nault made his comments after meeting with U.S. industry and government leaders in Washington to lobby for Arctic gas development. “Over-the-top” route should be considered He said he favors both the Alaska Highway and Mackenzie Valley pipelines and suggested that an “over-the-top” route should also be explored.
But Nault cautioned that Canada remains opposed to any form of subsidies, such as a margin-well credit, to allow deliveries of North Slope gas through Canada to the Lower 48.
He said Canada’s regulatory control over a pipeline passing through its territory “will have to be respected.”
If the United States does offer subsidies they will be studied by Canada’s National Energy Board to “determine whether in fact the (Alaska) project would go ahead,” he said.
Although Canada objects to any subsidies that undermine the operating of gas markets and jeopardize investment in a Mackenzie Valley project, Nault said loan guarantees for pipeline owners would be a “legitimate approach” to accelerating the project.
“Cooperation between the American government and the Canadian government is necessary in order to see this (Mackenzie) pipeline built,” he said.
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