NORTHWEST TERRITORIES
Northwest Territories Premier Bob McLeod says the territory would consider working with the Alberta government on a proposed pipeline project from Alberta to the NWT.
Bob McLeod: Would consider working with Alberta on proposed pipeline. |
"We're not prepared to see our oil and gas stranded for another 40 years," McLeod said.
"If there is a proposal put forth to ship oil
north, we would seriously consider it."
Ken Hughes, Alberta's energy minister, said the province has hired consulting firm Canatec Associates International Ltd. to complete a feasibility study on a pipeline that would carry oil from Alberta to the NWT and the Arctic Ocean.
While Hughes said Tuktoyaktuk is one of the destinations being considered, it isn't the only one.
"We're not just interested in Tuk, we're interested, in general, in a sensible, thoughtful review of alternatives," Hughes said.
Hughes said the $50,000 study will help determine if such projects are viable. He also said he was not sure when the feasibility study would be released.
"We're simply trying to gain a better understanding of what options might exist," he said.
Hughes said the province would partner with the territory to build the infrastructure required to export oil and gas to a global market.
"I've learned the Northwest Territories is very much in the same boat as Alberta, except that you have even more challenges getting your energy projects to market because you're that much farther removed from the market," he said.
"So, we're very interested in working with the Northwest Territories government to explore what might be in our common interest to develop transportation infrastructure that would be of benefit to both the Northwest Territories and Alberta."
One aspect of that infrastructure is a deep-water port, which could be located in Tuktoyaktuk.
McLeod said a port at that location would provide access to the Northwest Passage, as well as offshore oil projects.
"I think it would be very significant, especially with the tremendous potential for oil and gas in the Beaufort Sea, also with the melting of the Arctic ice pack and the opening of the Northwest Passage," he said.
"I think that a deep water port there would make a tremendous difference for the area, especially with the Inuvik to Tuk highway under construction."
McLeod said a port would establish Tuktoyaktuk as a coastal hub for resource industry activity, as well as tourism and shipping.
"I would see it as being the logistics centre and also the centre for oil and gas cleanup and tourism and shipping and everything," he said.
Both McLeod and
Hughes said the possible cost of any projects are not yet known.
"No we're way too early in the process to talk about anything like that," Hughes said.
McLeod also said his discussions about the project have primarily taken place with Alberta Premier Alison Redford.
The province is also looking at a possible railway route from Alberta, through the NWT and Yukon and into the oil terminal at Valdez, Alaska.
"There is a railway proposal from Alberta to Delta Junction in Alaska that would take advantage of the opening capacity in the pipeline going down to Valdez," Hughes said.
"There are any number of possibilities and really, we're at the stage where all ideas are good ideas."
Even if other pipeline projects go ahead, such as the Keystone XL Pipeline from Alberta to Texas and the Energy East Pipeline from Alberta and Saskatchewan to refineries on
Canada's East Coast - Hughes said Alberta will still look to the Arctic as another route for getting oil to the global market.
We need other access points to market," said Hughes.
McLeod said the same rule applies in the NWT with the Mackenzie Valley Pipeline project.
"Obviously our preference has always been for the Mackenzie Valley Pipeline," he said. "We've said we're going to keep all our options open."
McLeod also said if a pipeline project moved forward, it would be subject to its own environmental review, separate from the Mackenzie Valley review.
"For sure, I mean, there are no shortcuts in this business," he said.
McLeod said he met with representatives from China in Calgary on April 18 to discuss investment opportunities in the territory.
"It was an opportunity to brief all of these Chinese oil and gas companies about the Northwest Territories," he said.
McLeod said the group discussed devolution and its possible affect on the territory's foreign investment policies, as well as the territory's climate, geography and resources.
"We are looking for investment and we're trying to show that the NWT is a good place to invest, and that it's also a good place to live and to work," McLeod said.
"We think having a diversified economy will really promote healthy communities and a strong, vibrant population and that's what we're working toward."
Hughes said he and other energy ministers from across Canada are scheduled
to meet in Yellowknife
during the Energy and Mines Ministers' Conference in August.
