Yellowknife (May 05/03) - Economics, not government subsidies, must guide development of Northern natural gas pipelines, Canada's Northern Development Minister Robert Nault told members of the U.S. Senate and House of Representatives last week.

Nault was in Washington to tell Americans that Canada is ready for pipelines that will bring gas from Northern fields to energy-hungry southern markets.

Industry and governments agree that the Mackenzie Valley project will go first, said Nault, with the Alaskan pipeline not far behind.

But at the same time, he said it is equally important that the Canadian government supports pipelines down the Alaska highway and Mackenzie Valley.

"There is no race," he said.

"We have some concerns with making sure that (economic) forces dictate the routes and that there's no distortion of the marketplace through subsidies."

Before embarking on his two-day trip to Washington April 29-30, Nault called securing American support for pipelines "equally important" as the relationship with pipeline producers and the aboriginal people North of 60.

"When they come together you'll see a pipeline delivered that meets the needs of consumers in North America," Nault said.