Mackenzie Gas Project extension approved

The National Energy Board of Canada has approved a delay in construction of the Mackenzie Gas Project, including the 1,220-km Mackenzie Valley Pipeline between three Arctic fields and northwestern Alberta.

Imperial Oil Resources Ventures Ltd. applied for the extension last year, citing “challenging North American natural gas market conditions (OGJ Online, Aug. 28, 2015).”

The NEB said the project remains in the public interest and granted Imperial’s request to delay construction-start deadlines for the Mackenzie Valley Pipeline and Mackenzie Gathering System to Dec. 31, 2022. The pipeline extension requires approval by the federal government.

The entire project would involve 1,842 km of pipelines.

Under the NEB’s original approval of the project, construction was to have started by the end of 2015. Last November, the board extended the sunset clauses to Sept. 30, 2016, so it could consider Imperial’s application.

The NEB coordinated its review of the application with the Northwest Territories Regulator of Oil and Gas Operations, which has assumed oversight of onshore oil and gas work in the region outside the Inuvialuit Settlement Region.

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