Current Status - 2011
March 10, 2011
Federal Government Issues Governor-in-Council Approvals for the Mackenzie Gas Project: Certificate of Public Convenience GC-116
The Federal Cabinet has approved an Order-in-Council authorizing the National Energy Board to issue a Certificate of Public Convenience and Necessity (CPCN) for the Project. This certificate, which was received today, is the principal regulatory approval required to construct the pipeline. It means the project has been found to be in the public interest, and the holder of the certificate has the authority to acquire the necessary right-of-way, construct and operate the pipeline. It should be noted, however, that the majority of the right-of-way has already been acquired through the successful negotiation of Access and Benefits Agreements. The Certificate contains a total of 74 conditions which the Project must adhere to during the construction and operation of the pipeline.
- APG and the MGP proponents are pleased that the Federal Cabinet has issued the Order-in-Council approving the issuance of the principal regulatory approvals required for the Project to proceed.
- The conclusion of the regulatory process is a significant milestone for the Project.
- The proponents will progress discussions with the Federal Government on an appropriate fiscal framework in order to re-initiate project activities (e.g. re-staff the project and resume engineering, permitting and field work).
- North American energy and natural gas demand will continue to grow. This demand growth, combined with natural declines in existing conventional natural gas production, positions the MGP as a significant, new supply source for the longer-term North American market.
- The MGP is truly a nation-building project that will deliver the clean energy we need in an environmentally responsible manner, creating jobs and economic benefits for all Canadians.
It is important to note that the CPCN applies only to the natural gas pipeline itself. The NEB has also issued development permits approving construction of the three on-shore gas fields and the gathering system. Each of these permits also contains conditions mirroring those in the NEB decision last December.
As the following schedule illustrates, construction will not commence until 2015 at the earliest. Please refrain from forwarding company profiles or employment applications until Owners Decision to Construct (DTC).
Project Schedule – Best Scenario
► 2011 – Regulatory Process concluded
► Q2 2011 – Fiscal Framework concluded
• Financeable for APG
• Economic for Producers
► Q3 2011 – Decision to Re-start
• Re-staffing, engineering, field programs, project permit applications (PPA’s)
► 2015 – Owners Decision to Construct (DTC)
► 2018 – First Gas!
The Mackenzie Valley Aboriginal Pipeline LP represents the interests of three of the four corridor aboriginal groups along the Mackenzie Valley of Canada's Northwest Territories. Imperial Oil is the operator of the Mackenzie Gas Project. Please contact Pius Rolheiser, Public Affairs - West, Corporate Planning & Communications, at firstname.lastname@example.org for information regarding contracting opportunities with the Mackenzie Gas Project. You may also access the MGP at their website: www.mackenziegasproject.com.
To review the NEB conditions click here