Thorunn Howatt
Northern News Services

Yellowknife (May 08/01) - Canada can't let arctic natural gas be stranded by American pipeline subsidies.

That was federal Natural Resources Minister Herb Dhaliwal's message last week in Detroit at a meeting of energy ministers of the Group of Eight richest countries.

Until now the federal government hasn't taken a stand on a natural gas pipeline that would carry arctic gas southward.

There are two competing proposals, one Alaskan and one Canadian.

The American line would follow the Alaska Highway southward and completely bypass Canadian gas reserves.

That $17-billion project was deemed uneconomic but the U.S. government wants to make guarantees and subsidies to help gas producers and lower the cost of building a pipeline.

The $3-billion Canadian proposal sees a pipeline starting at the Mackenzie Delta carrying gas southward following the Mackenzie Valley.

Dhaliwhal said the Canadian government may have to look at "other measures" to ensure Canadian gas isn't stranded.

Need for energy

Experts say oil consumption will increase by 33 per cent, natural gas consumption by at least 50 per cent and electricity demand by 45 per cent in the United States by 2020.

World oil consumption will increase from about 75 million barrels per day in 1999 to 120 million barrels per day in 2020.