Mackenzie Gas Project Receives NEB And Cabinet Approval

After conducting a five-year application process and having received approval from the Federal Cabinet, the National Energy Board granted a Certificate of Public Convenience and Necessity to the Mackenzie Gas Project.

The project includes the 1,196-kilometre Mackenzie Valley Pipeline, which would transport 1.2 billion cubic feet of natural gas per day from the Beaufort Sea to northern Alberta.  As well, the project will involve the development of three onshore natural gas fields and the construction of a 457-kilometre NGL pipeline linking Inuvik, NWT to Normal Wells, NWT and other related facilities.

Imperial Oil, the lead proponent of the project, now estimates Mackenzie's costs to be $16.6 billion.  The Imperial-led consortium, which includes Exxon Mobil Corp., ConocoPhillips, Royal Dutch Shell PLC, and the Aboriginal Pipeline Group, has until the end of 2013 to decide whether to proceed with the project.