Mackenzie delay costly :report
Date: Saturday, October 22 2005
Hear that corporate sucking sound?
By DAVE EBNER
Saturday, October 22
From Saturday's Globe and Mail
Calgary — A two-year delay in building the $7-billion Mackenzie Valley natural gas pipeline and other gas infrastructure could cost Canadians $58-billion from 2006 to 2025, according to a study by the Canadian Energy Pipeline Association.
The report, to be unveiled Monday by the industry lobby group, suggests that Ottawa needs to do more and share more of the risk with those companies proposing to build the massive infrastructure projects.
Imperial Oil Ltd. — which has booked a $1.6-billion profit for the first nine months of this year — is the lead proponent behind the Mackenzie Valley project and has halted most work on it, in part complaining that Ottawa isn't doing enough to help. Imperial earlier this month said the project doesn't yet make economic sense.
Canada's two richest provinces would bear two-thirds of the financial pain if delays slow development, the report said. Ontario could face a $19-billion hit, the report said, and roughly half of that — $8-billion — would be borne by residential consumers. Alberta faces the biggest hit, $20-billion, mostly expected to hurt industrial users.
The association is using the report to lobby Ottawa to do more for the Mackenzie line, as well the Alaska gas pipeline that would cross through Canada and liquefied natural gas import facilities.