Natural gas reserves in northern Canada and Alaska will be needed to meet the rising North American gas demand. Potential mean reserves 164 KB in Yukon will play a role in meeting the demand.
Getting the gas to market requires the construction of pipelines. There are currently two northern pipeline projects being proposed by producers in Alaska's North Slope and the Mackenzie Delta - The Alaska Highway Pipeline Project (AHPP); and the Mackenzie Gas Project (MGP).
The AHPP is currently being advanced by TransCanada Pipelines Ltd and Exxon Mobil. If the project goes ahead, it will be on stream in 2018.
The MGP is being advanced by the Mackenzie Producers Group (MPG) - Imperial Oil, ConocoPhillips, Shell Canada and ExxonMobil - and the Aboriginal Pipeline Group. In December 2010 the National Energy Board (NEB) stated its support for the project, following the completion and submission of a feasibility study of the project and relevant applications from the Group. It is now up to the MPG to determine if the project is economically feasible.
Construction of both projects will provide significant benefits to the Yukon, including jobs, business opportunities, access to gas and more. The Yukon government supports the construction of both pipeline projects and is continuing its preparation to ensure Yukon maximizes benefits and minimizes impacts. Yukon has identified seven key pipeline interests in order to maximize the benefits and minimize the undesirable impacts of northern pipeline development.