Gulf Canada proposes regulatory application for Mackenzie Delta pipeline

A partner in a producer group studying plans for development of natural gas reserves in the Mackenzie Delta says the regulatory process should be started now for a pipeline from the delta to Alberta and southern markets. Gulf Canada Resources Ltd. CEO Dick Auchinleck said he hoped the regulatory process could be started early in 2001.


CALGARY�A partner in a producer group studying plans for development of natural gas reserves in the Mackenzie Delta says the regulatory process should be started now for a pipeline from the Delta to Alberta and southern markets.

Gulf Canada Resources Ltd. CEO Dick Auchinleck said he hoped the regulatory process could be started early in 2001. Auchinleck said Gulf is pursuing development aggressively.

Gulf has reserves of about 1.3 tcf in the Parsons Lake region of the Mackenzie Delta adjacent to the Beaufort Sea. Other members of the group include Shell Canada Ltd. and Imperial Oil Ltd., which also hold reserves in the area. Proven reserves in the area are about 6 tcf.

Cost of a line with capacity of up to 1 bcfd is estimated at $3 billion (Can.). The line would run south from the Delta fields to Norman Wells in the Northwest Territories where it would then run parallel to an existing crude oil line operated by Enbridge Inc., Calgary, to mainline pipe connections in northern Alberta.

Auchinleck said he was speaking from Gulf�s perspective and not for the study group in urging an early application. The group is not expected to make a decision until early 2001.

The Gulf executive told analysts a new northern line as a stand-alone project could be on stream within 5 years if the regulatory process is started soon.

Other producers, including BP, are studying feasibility of a line from Alaska�s North Slope via the Beaufort Sea and the Yukon to southern markets.

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