Richard Gleeson
Northern News Services

Yellowknife (Oct 09/00) - Yukon and Northwest Territories premiers are shining the best possible light on their competing bids for natural gas pipelines through their respective back yards.

There is no pressure for a quick decision, but the premiers Stephen Kakfwi and Pat Duncan are taking every opportunity to push their proposals forward.

Kakfwi pumped the Mackenzie Valley route in a speech Wednesday to the U.S. Senate Energy and Natural Resources Committee in Washington.

Duncan made her argument for the Alaska Highway route Monday in Calgary at the International Pipeline Conference and Technology Exposition.

Later in the week, Duncan and Alaska Governor Tony Knowles agreed to work together to make the Alaska route happen, and signed an intergovernmental relations accord.

Costs

Kakfwi told the Senate committee it will cost $2.3 billion U.S. to build a pipeline from the Beaufort Delta to British Columbia.

Duncan said the figure is $2.5 million and that's for a pipe with relatively small capacity. A larger diameter pipe would bump the price up to $4.2 billion, said the Yukon premier. Add the "staggering" cost of an undersea link to reserves on the north shore of Alaska and the price jumps to $10 billion.

Kafkwi told committee members the math is fairly simple.

"At 1,340 kilometres, the Mackenzie Valley route ... is shorter than any of the proposed alternatives. On this basis alone, it would cost considerably less to build.

"Remember, too, that the terrain -- a broad river valley -- is condusive to pipeline construction, thereby also keeping costs down."

Duncan said it would cost $6-8 billion to build a pipeline down the Alaska Highway.

Regulatory regimes

Because time is money, a big consideration for gas companies -- which will ultimately decide which route will be used -- is how quickly they can get the necessary environmental approvals.

Duncan told producers the deal is already done "because regulatory approvals are already in place, environmental reviews have been completed, and North Slope gas is pipeline ready."

Kakfwi informed U.S. senators the NWT is no newcomer to the pipeline review game. He noted there are already four operating pipelines in the Liard, Sahtu and Inuvialuit regions.

"The Mackenzie Valley pipeline route does not cross, or lie adjacent to, any major caribou habitat," said Kakfwi. "It is recognized to have fewer environmental impacts than alternative options."

Duncan said getting approvals for a sea link between the Mackenzie Valley and Prudhoe Bay "would be difficult if not impossible."