By OGJ editors
HOUSTON, Oct. 25 -- A 2-year delay in construction of the Mackenzie Valley gas pipeline, Alaskan gas pipeline, and LNG receiving terminals could cost Canadians $57.7 billion (Can.) during 2006-25, the Canadian Energy Pipeline Association (CEPA) said.
The estimate is part of a report CEPA commissioned and released on Oct. 24 during Ziff Energy Group's North American Gas Strategies Conference in Calgary.
"More than $20 billion will be spent over the next 2 decades by our industry on capital projects," said CEPA Pres. David MacInnis. "These studies show that the impact of any delays is significant. We need to ensure there are timely regulatory reviews and approvals and the fiscal environment remains attractive and competitive. We need to
ensure there are no unnecessary delays."
The report, entitled The Costs to Canadian Consumers in Delays in Construction of Energy Transportation Infrastructure, said gas costs to consumers could rise by $20.2 billion in Alberta and $19.1 billion in Ontario. The rest of the $57.5 billion would hit other parts of Canada.
A companion study, The Economic Impacts of Constructing an Energy Pipeline, estimated the economic benefits of pipeline investment.
The study said a $1.52 billion, 1,000 km gas pipeline, half in Alberta and half in British Columbia, could increase the Canadian gross domestic product by $1.2 billion/year. Of that benefit, $202 million would occur outside Alberta and British Columbia.
