Partners scrap big Mackenzie gas project

The Mackenzie gas project, which would have linked three natural gas fields in the Mackenzie Delta of Northwest Territories in Canada with northwestern Alberta, has yielded to competitive supply from unconventional resources.

The Mackenzie gas project, which would have linked three natural gas fields in the Mackenzie Delta of Northwest Territories in Canada with northwestern Alberta, has yielded to competitive supply from unconventional resources.

Imperial Oil Resources Ltd. said the joint venture planning the 1,220-km Mackenzie Valley Pipeline and related facilities has been dissolved.

“Since work on the Mackenzie gas project was initiated in 2000, the North American natural gas market has changed significantly,” Imperial said in a statement. “Mackenzie gas is currently not economically competitive with other sources of supply in North America due to a combination of factors, including high project costs and the continued growth of low-cost North American unconventional gas supplies.”

The project received approval of the National Energy Board in 2010. The Mackenzie joint venture requested a permit extension in 2015, citing “challenging North American natural gas market conditions (OGJ Online, Aug. 28, 2015).”

Other partners were ConocoPhillips Canada, ExxonMobil Canada, and the Aboriginal Pipeline Group.

In addition to the gas pipeline and development of a gas resource estimated at 6 tcf, the project was to have included a gathering system, gas processing plant, and 457-km NGL pipeline between Inuvik and Norman Wells.

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