The Canadian government has decided not to invest in the C$16.2 billion ($15.2 billion) Mackenzie Valley Pipeline, the National Post reported, citing unidentified people.The government has supported the project to date but has now pulled when Jim Prentice, the Environment Minister, took a major financial assistance package proposal to a Cabinet committee last week and it was turned down over concerns about the project’s price tag – according to National Post sources.
But the bottom line here is that the massive discoveries in “shale gas” have made the Mackenzie Valley pipeline financially unattractive. While there is an estimated seven trillion cubic feet of gas in the Beaufort Sea, there is an estimated 1,000 trillion cubic feet of gas shale deposits in shale deposits across key locations in North America including British Columbia’s Horn River and Montney basin. Its not the cost of the pipeline, its the fact it does not make economic sense with technology unlocking natural gas across closer to end customers.
In Canada, pipeline development will focus on pipelines from the Horn River basin to Kitimat, BC, and pipelines frmo the Alberta oilsands south to the US, and possibly west to Kitimat to open new markets for the oilsands to China.
National Post: Pipeline dream in peril