Canada approves $16-bn Mackenzie gas pipeline

Canada's independent watchdog the National Energy Board (NEB) has given its final nod of approval on Thursday for the multi-billion dollar Mackenzie Valley pipeline, further to the federal cabinet's consent for the project.

The NEB issued a certificate of public convenience and necessity that cleared the way for the project bringing an end to a lengthy regulatory process that lasted over six years.

The 1200-km pipeline system would link Canada's northern natural gas producing wells to the southern markets and connect to the existing pipelines system in northwest Alberta. The project is estimated to cost approximately $16 billion.

The Mackenzie project is promoted by a consortium led by Canada's largest petroleum company Imperial Oil Resources Ventures Ltd, the Mackenzie Valley Aboriginal Pipeline Ltd Partnership, ConocoPhillips Canada (North) Ltd, Shell Canada Ltd, and ExxonMobil Canada Properties. Global oil and gas giant ExxonMobil Corp owns 70-per cent stake in Imperial Oil.

"This is the conclusion of the regulatory process. It's a significant milestone and obviously we're very pleased," said Pius Rolheiser, a spokesman for Imperial Oil.

As the next step, the promoters intend to re-start their discussions with the federal government on the incentives for the project, which include infrastructural development of the sparsely populated Northwest Territories (NWT), the main location of the project.