Inuvik (Mar 07/03) - There may be a new partner joining the team of producers to build a Mackenzie Valley natural gas pipeline.

In a press conference held last week in Calgary, Imperial Oil said they would be open to allowing a new investor into the pipeline.

Tim Hearn, chief executive of Imperial Oil Ltd., says the consortium of natural gas producers may be willing to reduce their stake in a $4-billion Mackenzie Valley natural gas pipeline, if bringing in another partner might help push project forward.

"We are probably open to some potential new ownership," Hearn said.

"If someone clearly comes to the table and brings a lot of value added to the program, and equity, I think we would look very seriously at them being a partner."

The Imperial-led Mackenzie Gas Project (MGP) currently includes Shell Canada Ltd., ConocoPhillips and Exxon Mobil Corp. and the Aboriginal Pipeline Group.

Hart Searle, spokesperson for the Mackenzie Gas Project and Imperial Oil, said the original memorandum of understanding had provision to allow for other parties to come on board.

Searle said that last summer the MGP issued a request for proposals from "a small number of qualified pipeline companies."

"We were soliciting their ideas on how they might add value to the project," Searle said.

They asked for their ideas on operation with and without ownership in the proposed Mackenzie line.

While Imperial was seeking input and could entertain the possibility of ownership with a pipeline company, Searle said that ownership would not be considered by any other producers.

TransCanada Pipelines is the likely candidate to construct the proposed line.

While they say they are continually in discussions with various parties on a Northern pipeline, they would not comment on specifically.

While the project may be expanded to take in a pipeline company, Searle said they would not be offering a further share to another producer.

"We've explained to other explorers that we're certainly not looking to expand the ownership roster," Searle said.

Michel Scott, vice- president of frontiers with Devon Canada, said although they are a major stakeholder in the Mackenzie Delta and Beaufort Sea, they have never been asked to join in the producer's group.

"We certainly were interested in discussing it with the pipeline promoters, but we never really did get the opportunity to do that," Scott said.

Fred Carmichael, chairman of the APG, said anything that helps move forward the project would be "great," but affirmed the APG's one-third share will not be diluted or divided.