CALGARY, Alberta, Sept 1 (Reuters) - The Canadian government needs to muster the political will to ensure the C$16.2 billion ($14.7 billion) Mackenzie Valley natural gas pipeline is built, the Northwest Territories energy minister said on Tuesday.
Bob McLeod, the NWT's minister of industry, tourism and investment, said the federal government needs to do more to accelerate construction of the line, which would carry up to 1.9 billion cubic feet of gas per day from the Mackenzie River Delta in Canada's Far North to southern markets.
The project is stalled as the line's backers, led by Imperial Oil Ltd, wait for an overdue regulatory report and while they negotiate fiscal terms with a federal government that has said the project needs to make commercial sense to go ahead.
The NWT government wants to see the Canadian government offer more concrete backing for the project, particularly since the U.S. government has offered $30 billion in loan guarantees for a larger rival project that would take Alaskan gas to market.
'We think the Canadian government needs to find the political will to make sure the Mackenzie pipeline goes ahead,' McLeod said. 'It's not just about money, it's about creating jobs, lower fuel costs for Canadians, and it will open up the north for exploration.'
McLeod said the federal government needs to view the project as key plank in its push to demonstrate Canadian sovereignty of its Arctic lands and waters. He also touts the project as good for the environment, since the natural gas could displace other fuels that emit more carbon dioxide.
'We need to get on with the pipeline,' he said.
($1=$1.10 Canadian)
(Reporting by Scott Haggett; editing by Peter Galloway) Keywords: CANADA ENERGY/MACKENZIE (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Bob McLeod, the NWT's minister of industry, tourism and investment, said the federal government needs to do more to accelerate construction of the line, which would carry up to 1.9 billion cubic feet of gas per day from the Mackenzie River Delta in Canada's Far North to southern markets.
The project is stalled as the line's backers, led by Imperial Oil Ltd, wait for an overdue regulatory report and while they negotiate fiscal terms with a federal government that has said the project needs to make commercial sense to go ahead.
The NWT government wants to see the Canadian government offer more concrete backing for the project, particularly since the U.S. government has offered $30 billion in loan guarantees for a larger rival project that would take Alaskan gas to market.
'We think the Canadian government needs to find the political will to make sure the Mackenzie pipeline goes ahead,' McLeod said. 'It's not just about money, it's about creating jobs, lower fuel costs for Canadians, and it will open up the north for exploration.'
McLeod said the federal government needs to view the project as key plank in its push to demonstrate Canadian sovereignty of its Arctic lands and waters. He also touts the project as good for the environment, since the natural gas could displace other fuels that emit more carbon dioxide.
'We need to get on with the pipeline,' he said.
($1=$1.10 Canadian)
(Reporting by Scott Haggett; editing by Peter Galloway) Keywords: CANADA ENERGY/MACKENZIE (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.