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Thorunn Howatt
Northern News Services
A Yukon government study reports a $17-billion Alaska Highway pipeline project could generate nearly 32,000 Northern jobs in Canada and up to $28 billion in revenue for governments across the country.
The Alaska pipe would begin at Prudhoe Bay on Alaska's North Slope and follow the Alaska Highway to Alberta. It would completely bypass Canadian Mackenzie Delta gas and undermine a competing Mackenzie Valley route.
The NWT government backs the Mackenzie Valley route and in a study of its own said the all-Canadian route would add more than $50 billion to the Canadian economy.
The NWT government calls the Mackenzie route more economical, although Resource Minister Jim Antoine acknowledged "the Alaska Highway pipeline project will generate employment and revenues."
The Canadian government has remained route-neutral -- refusing to support either project.
"We are saying Canada should not support the Alaska project," said Antoine.
But U.S. House and Senate bills propose the Alaska line run through the state's interior following the highway. One American bill would provide builders with a tax credit whenever the price of natural gas falls below $3.25 per thousand cubic feet.
American subsidies would make the Alaska line more appealing to gas producers.
The Yukon has about nine trillion cubic feet of energy reserves. The Yukon study doesn't take into consideration benefits spinning off from further exploration as a result of an Alaska pipeline.
"The Yukon has always maintained there would be two pipelines. An Alaska Highway route and a Mackenzie Valley route," said Yukon government spokesperson Greg Komaroni, adding that there is a market for gas flowing from both lines.
The Yukon government said its study, completed by Ottawa-based Informetrica Ltd., proves the project benefits all Canada, not just the Yukon and Alaska.
