Thorunn Howatt
Northern News Services

Calgary, Alta (May 20/02) - Engineering research on a Mackenzie Valley pipeline mean contracts and jobs for Northern businesses.

Calgary-based ColtKBR was awarded the engineering contract for the Mackenzie gas project.

"We will be subcontracting some of that type of work out to companies in the North," said a vice-president at ColtKBR, Russ Grant.

Imperial Oil Resources, part of the Mackenzie Delta Producers Group, wants to build a natural gas pipeline from the Beaufort delta to Alberta via the Mackenzie Valley.

"It's pretty clear from the discussions we've had with the Mackenzie Delta Producers Group in dealing on this contract that's a key factor on this factor - they are interested in extending opportunities to Northern companies and Northern individuals," said Grant.

Portions of the projects include natural gas production and gathering facilities, a natural gas liquids recovery plant and main transmission pipeline related facilities.

The company will also be engineering roads, docks and airstrips needed to support an eventual pipeline. The value of the contract was not disclosed but the producer consortium, made up of Imperial Oil, Conoco, Shell and ExonMobil, have estimated they will spend between $200 million and $250 million on this project definition stage. The stage includes engineering as well as community consultation.

"The work planning effort includes visits to Northern communities," said Imperial Oil spokesperson Hart Searle. "One of the foremost aspects of this contract award is that the winner, the successful bidder, had to achieve our objectives for aboriginal and Northern employment and businesses."