The Mackenzie Gas Project

There is an estimated 2.5 trillion cubic meters of natural gas in the Mackenzie River delta and Beaufort Sea area.      No pipe exists to use this resource. In 1970s, a pipe was proposed but not built for numerous reasons. In 2001, four oil companies- imperial oil, Conoco-Phillips Canada, Exxon-Mobil Canada, and Shell Canada (producers) – and the aboriginal pipeline group (APG) proposed the Mackenzie gas project. Trans-Canada pipelines joined in 2003, with the option to buy the pipe when constructed.

The Mackenzie Valley Pipeline (MVP) is the key part of the Mackenzie gas project. This would move the gas 1400 Km from 3 gas fields in the Mackenzie River delta and Beaufort Sea area to existing pipes in Alberta. It would take 2 years to make enough steel to build this pipe.

 The total cost is expected to be about 7 billion dollars – this includes gas production facilities, feeder pipelines, compression stations, airstrips, and roads. This would employ a total for 1300 workers during construction.

 The aboriginal pipeline group became a full participant in the project to preserve aboriginal lands living along the route of the pipe. APG will get a share of the profit and ensure environmental damages are limited.

 Not all aboriginals supported the project because they fear they are selling their traditional values. Also concerned that increased flow of workers from south will cause conflict.

In 2006, companies still have not agreed.

Companies believe communities along the route wanted too much money for access to their land. This would cause delays.