Chretien onside

Prime Minister backs NWT oil, gas development

Richard Gleeson
Northern News Services

Yellowknife (Apr 06/01) - Prime Minister Jean Chretien's words were like music to territorial politicians' ears.

"We must develop Canadian natural gas resources in the Northwest Territories and the Mackenzie Delta and bring this gas south as soon as possible to meet market demands," Chretien told a room full of oil and gas executives in Calgary Friday.

Jean Chretien

"We've got the Prime Minister's attention, clearly," said territorial Economic Development Minister Joe Handley. For the past two years, the territorial government has been urging the federal government to state publicly it supports the development of Canadian gas.

Handley said the federal show of support was important, "simply because Canadian gas wasn't getting any attention. The focus was all on Alaskan gas."

Chretien's luncheon speech to the Canadian Association of Petroleum Producers in Calgary marks the first time he has spoken publicly about Northern gas since the December election.

During a campaign stop in Whitehorse he boasted agreements brokered by the Liberal government in the 1970s left Alaskan producers with virtually no choice but to pipe their gas through the Yukon.

The statement angered NWT politicians and elated their Yukon counterparts. The Yukon is backing the development of pipeline that would transport gas from Alaska's north shore through the Yukon.

Handley said that at current levels of consumption, there is enough gas in Alaska to supply North America for 70 years.

The development of an Alaska-Yukon line could "strand" proven and potential reserves in the Beaufort-Delta estimated to be worth $400 billion. The territorial government wants that gas shipped south through a pipeline down the Mackenzie Valley.

In addition to stating his support for the development of Canadian gas, according to his prepared speech, Chretien announced the establishment of a committee of ministers on energy. The committee is chaired by federal Minister of Industry John Manley and includes Natural Resources Minister Ralph Goodale.

Handley said he will be meeting with Goodale on Tuesday.

The energy committee is to co-ordinate work at the federal level to ensure Canada takes "full and quick" advantage of opportunities in the energy sector.