Although I’m not a shareholder of APXR I do have share your pain of stranded northern gas through my shares of MGM Energy and International Frontier. I just thought I’d pass along an encouraging link to the Yukon Gov’t website. They took Imperial’s statements about a possible MVP revamp so seriously they posted their first update on the MVP in YEARS!! A glimmer of hope for all us long suffering investors in the North.
www.emr.gov.yk.ca/oilandgas/mgp.html
The Yukon Government supports the development of the MGP and the approval of the project by the National Energy Board (NEB) and federal government.
On January 6, 2010, the NEB requested the parties submit comments on the Joint Reveiew Panel (JRP) recommendations. In March 2010, the NEB sent the JRP proposed modifications to its recommendations.
In the original MGP application, Yukon was largely ignored and left out of the project. As a result of its intervention and participation in the NEB regulatory process, Yukon is now a recognized stakeholder in relation to the project. Yukon’s potential, both in terms of manpower and reserves, is well known and established. Should the project proceed, Yukon now has much to gain in terms of jobs, training, business opportunities and giving Yukon natural gas resources an opportunity to get to market.
The MGP pipeline, largely backed by Imperial Oil, with other partners Royal Dutch Shell PLC, ConocoPhillips, Exxon Mobil and the Aboriginal Pipeline Group (the proponents), won National Energy Board approval in 2011.
However, the proponents cut spending on the project in April 2012, due to poor market conditions created by the rapid development of low-cost shale gas reserves, and the lack of a deal with Ottawa on billions of dollars in fiscal support.
Recent Developments
Imperial Oil Ltd. announced in October 2013 that it is looking at a major revamp of the MGP that would see the stalled northern venture reborn as part of an expansive liquefied natural gas development.
Imperial says a shift to LNG is under serious consideration as the Mackenzie pipeline’s economics remain weak due to the flood of cheap shale gas across the continent.
The proponents are nearing a deadline to provide regulators with an updated cost estimate and progress report on a decision to move forward on the long-delayed plan to send gas to North American markets via a 1,196-kilometre pipeline.
They have until December 2015 to act on their Certificate of Public Convenience and Necessity.
Benefits
There are potential significant benefits to the Yukon:
• The pipeline would help us ensure Yukon's gas reserves in the northern basins are not stranded.
• Employment and business opportunities for Yukoners
• Employment for Yukoners in service, transportation, natural gas exploration and other areas.
AI
