Doug Ashbury
Northern News Services

Yellowknife (Oct 23/00) - As the NWT approaches possible construction of a pipeline to move Mackenzie Delta natural gas to markets south of 60, some big numbers are emerging.

According to a report prepared earlier this month by the Calgary-based Canadian Energy Research Institute, Canada would benefit the most from a $5.6-billion pipeline that moves Alaskan and Delta gas down the Mackenzie Valley.

This option includes a 600-kilometre offshore pipeline from Alaska's Prudhoe Bay to the Delta and a 1,400-kilometre pipeline down the valley.

The scenario, one of five studied by the report's authors, would generate 60,020 person years of employment nationally. Inside the total employment figures is 11,110 person years of employment for the NWT. That equates to 1,000 jobs for just over 11 years, for the NWT.

Total revenues for all governments is estimated at $9 billion ($3 billion more than estimated revenues from the Alaska natural gas transmission system plus a Dempster later route). The territorial government's net fiscal benefits, also part of the total, would be $512 million.

If a Mackenzie Valley plus Prudhoe Bay offshore link were to be built, it would mean about $1 billion in economic activity for the NWT.

Resource companies that hold the gas would see revenues of $18.3 billion, according to the study.

"From a producer standpoint, revenues from the Mackenzie Valley route over the ANGTS with Dempster lateral range from nearly $2.6 billion greater for the stand-alone Mackenzie Valley route to over $5 billion more for the 48-inch Mackenzie Valley route," according to the report.

"Clearly, producers are better served by a Mackenzie Valley route as well."

On Feb. 28, Imperial Oil Resources, Gulf Canada Resources, Shell Canada and Mobile Canada agreed to study the feasibility of developing their Delta gas resources. The four companies have discoveries totalling about six trillion cubic feet of natural gas in the region.

Of the producing group, Imperial Oil holds the largest Delta resource, known as Taglu, which is about three trillion cubic feet. The companies are meeting with aboriginal groups, territorial and federal governments, communities, other producers and pipeline companies.

It will likely be into 2001 before any conclusions are reached, said group spokesperson Hart Searle.

"We're not schedule driven. We're driven by wanting to make sure we're comfortable," added Searle, who is with Imperial Oil.

"As for the status, information gathering and discussions are ongoing. We're satisfied with the progress.

The renewed interest in Delta gas is prompted by increased demand in the North American market for the resource. As a result of the Berger Inquiry, a moratorium on development was recommended and economics continued to keep any plans on the shelf until recently.

To promote an NWT pipeline, the Aboriginal Pipeline Working Group was formed.

Delta discoveries include:

• Taglu, which contains three trillion cubic feet. It was discovered in 1971 by Imperial Oil. Imperial is 100 per-cent owner and operator
• Parson's Lake, which contains 1.8 trillion cubic feet of natural gas. The resource was discovered in 1972 by Gulf. Gulf, the operator, owns 75 per cent of the discovery while the remainder is held by Mobile Canada
• Niglintgat, which contains 1 trillion cubic feet of natural gas. This discovery was made in 1973 by Shell which is 100 per cent owner and operator

All the discoveries are onshore and near Inuvik in the Inuvialuit Settlement Region. They are sweet gas as opposed to sour gas which requires compound removal.