17 December 2010 14:22 [Source: ICIS news]
The country’s National Energy Board (NEB) approved Mackenzie this week, subject to some 260 conditions, after many years of review. The project was first proposed in the 1970s.
Canadian analysts and commentators said that with low North American natural gas prices in the wake of the recent US shale gas discoveries Mackenzie may not go ahead immediately.
However, Aboriginal Pipeline Group (APG), which holds a one-third stake in Mackenzie, welcomed the
Mackenzie and other projects were still needed as
“This means we will need an additional volume of 3bn-4bn cubic feet/day in
In a separate briefing, APG president Bob Reid said today’s low North American natural gas prices were not relevant for a long-term project like Mackenzie.
“It’s the gas price in the timeframe 2018-2020 right to 2040 that is really relevant here,” Reid said on Canadian business television.
APG believed there would be the need for the gas, at the “right price,” by the time Mackenzie was expected to come into operation at around 2018-2020, he said.
Bill Gwozd, vice president at Calgary-based consultants Ziff Energy also said that Mackenzie remained relevant.
“Shale gas is definitely growing, no argument there, but to offset shale growth you have to look at conventional gas, which is dropping like a rock,” he said.
“On top of that, we have natural gas demand growing,” driven by increasing demand from power generation and the drive to replace coal, he said.
Calgary-basaed Imperial Oil, which leads the
($1 = C$1.01)
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