Why the Mackenzie Gas Project Must Go Ahead

After years of delay, distraction and political dithering, a turning point in the exploitation of this resource has probably been reached – and the Mackenzie River valley is poised to become the central right of way for moving the gas to market

By Graham Chandler

July 01, 2006

The Yukon is on record as supporting both pipeline options, as they ultimately would benefit either
way, while giving an edge to the MGP. Handley, however, clearly wants the MGP choice. In fact, he’s downright enthusiastic about it. With resource revenue sharing negotiations with the federal government in progress, Handley knows what it could mean to his territory’s coffers.

“This project is worth about $24 billion in government revenues over the next 20 years and of that right now about 21 of the 24 goes to the federal government,” he says. “A lot of that in my view should come to the NWT. This project could mean at least 500 or 600 million dollars per year in increased revenues to the NWT.”

More than money

There’s more to it than cash, however. Development and expertise in the energy fields is important, says Prentice.

“Canada is emerging as one of the world’s leading energy producing countries and we’re certainly a centre of excellence as well in terms of expertise and knowledge and technical abilities – we have people from the Canadian oilpatch all over the world.”

For Prentice, the Indian Affairs portion of his portfolio would be the last thing overlooked in a positve MGP decision. Indeed, it may be the largest factor in terms of what it means economically to Aboriginals of the North. This is music to Premier Joe Handley, who naturally has this on the top of his list of concerns too.

“If (the MGP) didn’t proceed and we didn’t have anything else we would continue to have what we’ve seen up and down the Mackenzie Valley for the last 20 years – just a lot of poverty, a lot of people very frustrated, high unemployment and people really questioning their future in communities along the valley. We’d probably see a depopulation of that area because there just wouldn’t be jobs. People out of high school would just leave; there would be nothing there for them.”

This is also music to Aboriginal Pipeline Group chairman Fred Carmichael, who has made it a life quest to ensure social and economic benefits to Aboriginals.

“It is the first step for our people towards self-sufficiency,” he said in an interview last year. “I know we can no longer make a living on the land. Today our tribal council provides assistance to our trappers. The NWT provides assistance to trappers. Even with that, they can’t make a living. There’s no other industry in the (Mackenzie) valley.” If the MGP is not approved, “there would be no jobs,” says Carmichael. “What then do we have to offer our children and grandchildren? More welfare?”

In the end, Premier Joe Handley is optimistic. “I would say that unless gas goes considerably less than it is right now then there’s a 99 per cent chance it’ll go ahead,” he says. “If Imperial doesn’t do it, someone else will.”

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