Mackenzie Gas Project
The Mackenzie Gas Project (MGP) is a proposed 1,196-kilometre natural gas pipeline and gas gathering system, liquids extraction, liquids pipeline and related field developments along the Mackenzie River valley of Canada's Northwest Territories, to connect northern onshore gas fields with North American markets.
The proponents of MGP include Imperial Oil Resources, ConocoPhillips Canada, Shell Canada Limited, ExxonMobil Canada and the Aboriginal Pipeline Group (APG). The APG was formed in 2000 to represent the ownership interest of the Aboriginal peoples of the Northwest Territories in MGP. Since 2003, TransCanada has been providing funding to the APG for the definition phase of the project. In exchange for this funding, TransCanada earns a number of acquisition and expansion rights together with a financial return if the project goes ahead.
The MGP proponents received National Energy Board (NEB) approval and a Certificate of Public Convenience and Necessity for the project in March 2011. The approval contained 264 conditions, including the requirement to file an updated cost estimate and report on the decision to construct by the end of 2013 and, further, that construction must commence by December 31, 2015.
The project proponents continue to monitor ways to move the project forward but, to date, natural gas market conditions do not signal a commercially viable opportunity. The proponents have reduced spending on the project to a minimum, but remain hopeful that a solution can be found so that project activities may be restarted at some future date. If development of the project ultimately goes ahead, it would result in a natural gas pipeline being constructed from Inuvik, N.W.T, to the northern border of Alberta, where it would connect to TransCanada’s system in Northern Alberta.