Yellowknife (Sep 25/06) - Premier Joe Handley's vision of speeding up construction of the proposed Mackenzie Gas Project may not be feasible, based on comments made by the project's lead proponent, last week.

Imperial Oil said they are working on a revised cost analysis for the estimated $7.5 billion pipeline project, and the company is sticking to its original construction schedule.

Premier Handley told News/North that working on the pipeline year round may be a better way to go. -

"The application made was for three winter construction seasons," said Pius Rolheiser, spokesperson for Imperial, who added there was no plan to alter that.

Friday, Handley told News/North that working on the pipeline year round may be a better way to go.

"Rather than build this as a winter project, given the tight labour market in northern Canada, it's easier and makes more sense to do more of the work year round," he said after meeting with Indian and Northern Affairs Minister Jim Prentice in Ottawa.

"And if you do that way it makes building the highway (from Wrigley to Tuk) even more important."

The pipeline and extending the Mackenzie valley highway were among several topics Handley and Prentice discussed in their hour-long meeting.

Rolheiser acknowledged that finding workers for three seasons was going to be a challenge. "Obviously, the ability to attract workers and secure a sufficient workforce is a concern we have," Rolheiser said. "But we're confident in our ability to address that."

In the first year of construction, expected to begin in 2008/2009, if the pipeline gets the go-ahead, Imperial estimates it will require 3,000 workers.

The following two seasons, Imperial projects the need for between 8,000 and 8,500 workers.

As for an Edmonton Journal story Tuesday that reported the MGP's operation would be set back to 2012, Rolheiser said he couldn't comment until work is complete on Imperial's revised cost analysis and construction schedule.

"The headline in the Edmonton Journal took me by surprise," said Rolheiser. "The setback to 2012 was attributed to the minister (of Industry, Tourism and Investment Brendan Bell's) comment. We're hoping to have (the revised cost and schedule) finished later this fall and then we'll be in a far better position to discuss timelines."

Bell told the newspaper regulatory extensions and cost overruns, coupled with dropping natural gas prices, would delay the pipeline for a year.

He was unavailable for comment before press time.