Paul Bickford
Northern News Services

Hay River (Apr 12/04) - A pipe-coating plant in Hay River is not quite a done deal.

Jim Kellett, a spokesperson for the Deh Cho Pipe Company (DCP), says construction of the plant may depend on the proposed Mackenzie Valley pipeline.

"We're not committing to build it if the pipeline does not go ahead," Kellett says.

On the other hand, he says, if there is no Mackenzie Valley pipeline, that doesn't necessarily mean the plant won't be built.

"Technically, it is viable based on activity in northern Alberta," he says. "It could fly without the Mackenzie Valley gas project."

Kellett says the Deh Cho Pipe Company hopes the Mackenzie Gas Project (MGP) would become an "anchor client" and ensure the long-term viability of the plant.

The company is hoping to time the development of the plant with the approval of the pipeline, he explains.

However, Kellett says there has been no contact with the Mackenzie Gas Project. Instead, he explains DCP is basing its hope for pipeline work on MGP's support for northern involvement in the project.

Joint venture

A buzz was created in Hay River earlier this month when a memorandum of understanding for a joint venture was announced between DCP and Italy's Socotherm.

"They're an enormous international player," notes Kellett.

Socotherm committed to providing pipe-coating equipment and technicians to lead the process and train Northern operators. DCP will provide local and aboriginal experience, personnel and logistics services, as well as the land for the 35,000 sq. ft. manufacturing and storage facility.

An application for 116 acres of land near the Fort Smith turn-off on the Mackenzie Highway has been made to Hay River Town Council, and the request has been forwarded to the Department of Municipal and Community Affairs.

Construction of the plant would take less than a year. Up to 100 people would be employed during construction, and about 50 permanently.

The pipe-coating process places a barrier against corrosion on the exterior of the pipe and a flow enhancer on the inside, Kellett explains. "It's a remarkably simple process."

Hart Searle, a spokesperson for the Mackenzie Gas Project, confirms no arrangement exists with DCP and Socotherm, and no discussions have been held.

"We've really made no decision on where the pipe coating might be done for our project or who might be doing it," Searle says.

In fact, he notes tenders would not be called until well into next year, assuming the pipeline even goes ahead.

Searle is concerned the MOU announcement may have caused some people to incorrectly conclude there had been final approval to proceed with the pipeline and a decision on where the pipe coating would be done.

He says the MGP supports Northern benefits from a pipeline, "but we also have to be mindful to deliver a project that meets our needs, as well," he says.

Deh Cho Pipe Company is owned by Hay River entrepreneur Greg Whitlock.

Kellett says the company is in discussions with several potential Northern partners, which he declined to name.