"Reserves in the Northwest Territories are an integral source of supply to support a North American energy policy ..." -Stephen Kakfwi
Paul Michna
Yukon News
Calgary (Mar 19/01) - Stephen Kakfwi is fully aware of the growing political momentum stacking up behind the Alaska Highway route for the North's first natural gas pipeline.
But that didn't stop the NWT's premier, a tireless promoter of the Mackenzie River valley route, from making a comprehensive and persuasive sales pitch at a recent Arctic Gas Symposium.
 Stephen Kakfwi |
"I'm the only one advocating a Mackenzie valley pipeline that should go either before, or at the same time, as a Yukon route," Kakfwi told reporters.
And, unlike the National Governors' Association, which unanimously endorsed the highway route two weeks ago, Kakfwi's route has failed to receive any support to date from any of the key players in the decision-making process.
"I guess I'd like to hear stronger statements of support from the Canadian government," said Kakfwi.
"I'd like to hear them say that Canadian gas is not secondary to American gas, and that they want to make sure it gets to market at the same time."
Duncan, however, said Ottawa should butt out, and leave the decision to North Slope oil and gas producers.
"The Alaska Highway project is entirely a private-sector (proposal), and the government of Canada should do what governments do: regulate, and deal with the environment," said Duncan.
| The four major Mackenzie producers -- Imperial oil, Gulf Canada, Esso and Shell -- are expected to pick a route and apply to build a pipeline within 10 months, Kakfwi says |
So, he told conference delegates that instead of opening up the coastal portion of the Arctic National Wildlife Refuge to petroleum exploration and development -- which U.S. President Bush plans to do -- the industry will find substantial oil and gas reserves in the nearby NWT.
By setting his pipeline against the opening of ANWR -- a proposal that environmentalists and most Canadian politicians oppose -- he turned the spotlight on the Mackenzie route.
"Reserves in the Northwest Territories are an integral source of supply to support a North American energy policy, and are an important, viable alternative to developing ANWR," he said.
As well, he claims the NWT is "prepared to help solve North American's energy problems.
"The time to develop, and begin to export, our Mackenzie and Liard gas reserves is now.
"The stars are aligned. The market price is right and the long-term forecasts are optimistic."
He also took a swipe at the highway route, noting that "already, we are more than just a potential right-of-way for American gas."
The NWT has "what others want -- diamonds, clean water, unspoiled land, hydroelectric power and oil and gas," he said.
His own government's Non-Renewable Resource Development Strategy is pushing for $339 million of public investment in a Mackenzie gas line, as well as the NWT's burgeoning diamond-mining-and-processing industry over four years.
If Ottawa agrees to pony up $235 million of that, the NWT will contribute the other $100 million or so, said Kakfwi.
"With Canada expected to see a return of over $70 billion from resource royalties and taxes over the life of our diamond mines and gas fields, there can be no doubt about Canadians receiving an excellent return on investment."
Exploration firms are currently sitting on 14.5 trillion cubic feet of gas in the Liard basin and Mackenzie delta.
That's more than Alberta was estimated to have when its petroleum industry began with a boom 70 years ago.
The four major Mackenzie producers -- Imperial oil, Gulf Canada, Esso and Shell -- are expected to pick a route and apply to build a pipeline within 10 months, said Kakfwi.
Meanwhile, Duncan and Knowles were left trying to persuade delegates to the conference that they're not in competition with the Northwest Territories.
And during his keynote address, Knowles was careful to leave room for the Mackenzie route.
"I believe development of Alaska's North Slope gas, and that from the Mackenzie valley could -- and should -- be mutually beneficial, and not in competition," he said.
"The demand for natural gas shows that two pipelines -- the Alaska Highway route and the Mackenzie valley route -- are both feasible, and both could be built."
By sending a message of co-operation, Knowles believes the industry will be more willing to adopt a pipeline project.
"Certainly, I understand that Premier Kakfwi is going to be a passionate champion of the Mackenzie valley," Knowles said in an interview.
"But if we could look at ways in which the market, which appears to be large enough to accommodate both developments, as well as the same needs for Alaska and the Yukon, then that's what we ought to work together on, as opposed to the 'It's my project, and not your project' philosophy.
"Because when it gets that way, when you're for one project at the expense of another, saying that you're against another project..." His voice trailed off.
"The objective experts all agree that the demand is there. The question is, is there an adequate supply?
"And that's where it all leads to, so we've got to take advantage of that while it still exists."
Unnecessary competition is one of "many ways to throw a monkey wrench into these proposals and bring them to a halt," he said.
Kakfwi, who has been quoted as saying he's in competition with Alaska and the Yukon, seems obliged to play along for now.
"At the end, we want the gas to go to market, and work co-operatively to assure each other that both Alaska gas and Canadian gas gets to market," he said.
"That's the goal. But the short-term objective is to vie for the best pipeline options; that's what we're doing."
North Slope producers are conducting a $75-million feasibility study on potential pipeline routes. Applications could be submitted before the end of the year, and within two years, work on an Alaska Highway route could commence.
