Andrea Markey
Northern News Services

Yellowknife (Nov 14/05) - Northwest Territories Premier Joe Handley is almost certain the Mackenzie Valley pipeline will move forward.

"I am 99 per cent sure we'll hear good news later this month," he said last week. "Canada can't afford not to make it happen."

Although no specific details from closed-door talks between Imperial Oil, the federal government and aboriginal groups have been released, indications show progress is being made, he said. "I check on the status of talks two to three times each day. I feel really good right now."

Representatives from the Sahtu were in Calgary last week, continuing negotiations on impact and benefits agreements.

"They may not be ready to sign but they are getting there," he said.

Speaking in Calgary last week, Rex Tillerson, president of Exxon Mobil Corp. - the company that owns 70 per cent of Imperial Oil - told reporters he believes the $7 billion Mackenzie pipeline will go forward - ahead of the much larger $20 billion Alaska pipeline.

Given the stage both projects are at, it is likely the Mackenzie Valley pipeline would proceed first, said Imperial spokesperson Pius Rolheiser.

Tillerson's comments are not contradictory to statements made late last month by Imperial president Tim Hearn, who said the Mackenzie Valley project is uneconomical without federal incentives, Rolheiser said.

"I think what Tim was saying is 'the economics make it challenging' and Rex is saying 'but we remain optimistic,'" he said.

While finding enough skilled labour and materials to simultaneously build two large-scale pipeline projects would be difficult, the supply and demand factor for natural gas on the market would be more of an issue, he said.

"If the Alaska pipeline proceeds at the same time or around the same time (as the Mackenzie Valley pipeline), it would have a severe negative impact," he said.

"That impact would be felt far less if the Alaska pipeline was built three years after the Mackenzie pipeline, rather than three years before."

Rolheiser reiterated his comments from last week, saying talks with the federal government and aboriginal groups are at a critical stage, but progress is being made.