CALGARY - The oil companies behind the $7-billion Mackenzie Valley natural gas pipeline announced Thursday they had stopped most work on the project, saying there hasn't been enough progress in resolving several key issues, including access. Posted on 05/01/2005 3:36:16 AM PDT by M. Espinola
CALGARY - The oil companies behind the $7-billion Mackenzie Valley natural gas pipeline announced Thursday they had stopped most work on the project, saying there hasn't been enough progress in resolving several key issues, including access.
The pipeline partners said they remain committed to the project, but said progress has been so slow on bridging some differences that they are unwilling – at least for the time being – to commit more money. Imperial Oil leads four companies in Mackenzie Valley project
The oil companies said they would stop project execution work like geotechnical data gathering, the start of detailed engineering, as well as work leading up to contracting for construction. But they said they would continue "all work associated with advancing the regulatory review process."
The partners said "insufficient progress" had been made on resolving critical areas such as the fees the companies would pay for access to aboriginal land in the Northwest Territories.
"Despite significant effort and expenditures by the proponents and other parties, the reality is that adequate progress is not being made in key areas," Imperial Oil senior vice president Michael Yeager said in a statement.
"We are not giving up on developing a project that can be a sound investment for the proponents and can contribute to sustained economic development for the people of Canada's north, including employment, business opportunities and growth," Yeager said.
The Mackenzie Gas Project consortium said "substantial" progress would need to be made before public hearings begin later this year before the project would be allowed to continue.
The Mackenzie Valley Gas Project would tap natural gas in the Mackenzie Delta and move it 1,300 kilometres into Alberta. The gas will then be moved on to U.S. markets through existing pipelines.
The project, spearheaded by Imperial Oil, also includes Shell Canada, Conoco Phillips, and ExxonMobil.
The Aboriginal Pipeline Group (APG), representing most of the aboriginal people of the Northwest Territories, have a one-third share of the project.
While the APG supports the pipeline project, the Deh Cho First Nation does not.
I have a feeling they want to stifle the markets here in the United States.
I does look as if it will go right past the Canadian oil/gas patch, but Imperial and others will put their product into it, too.
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