Energy, Mines, and Resources

Oil and Gas Resources

Pipelines

Mackenzie Gas Project

The Mackenzie Gas Project (MGP) would begin at Inuvik, NWT, follow the Mackenzie Valley, and connect with existing gas pipeline systems in northwestern Alberta.

  • Length: approximately 1,220 kms
  • Diameter: 30 inches
  • Initial capacity: 1.2 billion cubic feet per day

The construction and operation of the MGP is expected to generate up to 181,000 person years (Wright/Mansell) of employment within the NWT, Yukon and Canada over a 24 year period, and pump billions of dollars into the Canadian, NWT and Yukon economies. (View an updated version of the original Wright/Mansell report).

Mackenzie Gas Pipeline

Status
Oil and Gas Resources's (OGR's) involvement with the Mackenzie Gas Project (MGP) hearings bore fruit in December when the National Energy Board (NEB) stated its support for the project. Numerous requests and submissions from OGR and the Government of Yukon were recognized in the NEB report and recommended as necessary for the project to proceed.

Areas where Yukon concerns were addressed included:
  • open access to the pipeline
  • training and employment
  • wildlife issues, specifically barren land caribou issues
  • supplying communities with natural gas from the pipeline
  • tolling methodology

The MGP proponents (led by Imperial Oil) have up to 5 years to commence construction of the project.

Yukon's interest in this project is significant. During construction, supplies and services will be required of Yukon businesses. Construction will also provide employment opportunities for Yukon residents. The presence of a pipeline provides a means for Yukon gas to be transported competitively to southern markets.

OGR's intervention in the MGP hearings has resulted in both the proponent (Imperial Oil) and Yukon committing to the enhancement of potential positive effects from construction and operation of the project,  and to mitigate potential adverse effects from the proposed project on Yukon's environment, communities and transportation infrastructure.

The proponents (Imperial Oil, Shell Canada, ConocoPhillips, ExxonMobil and the Aboriginal Pipeline Group) completed their feasibility study in 2003.

The proponents submitted their preliminary information package to the National Energy Board and in October 2004 filed their regulatory applications for approvals to the Joint Review Panel (JRP) and the National Energy Board (NEB).

Benefits
There are potential significant benefits to the Yukon:

  • The pipeline would help us ensure Yukon's gas reserves in the northern basins are not stranded.
  • Employment and business opportunities for Yukoners
  • Employment for Yukoners in service, transportation, natural gas exploration and other areas.

Information
For detailed information on the Mackenzie Gas Project, visit the following websites: