Jim Prentice, Minister of Indian Affairs and Northern Development, said the file is being handled by "excellent" people who will continue its momentum -
Election should not delay pipeline - Claudia Cattaneo Calgary Bureau Chief, Financial Post March 03, 2007 - CALGARY -
A federal election should not delay the proposed - Mackenzie natural gas pipeline, the minister responsible indicated yesterday.
Jim Prentice, Minister of Indian Affairs and Northern Development, said the file is being handled by "excellent" people who will continue its momentum.
"When I became the minister, I ensured that there was no loss of continuity.
We have really good people that will be able to sustain this on a go-forward basis," he told reporters after addressing a symposium on Arctic Gas.
There is speculation the government of Stephen Harper could call an lection as soon as this spring to take advantage of the Conservatives' surge in the polls.
The massive pipeline project, which has been delayed so many times it's now about five years behind the original schedule, will require key federal government decisions after Imperial Oil Ltd., the lead partner, finalizes a review of cost estimates by - the end of the month.
The oil company is expected to look for substantial fiscal enhancements to improve the project's economics.
The pipeline would transport gas from the Mackenzie Delta to Alberta.
Under a regulatory filing in 2004, the pipeline was expected to cost $7-billion.
However, analysts believe costs have likely increased above $10-billion.
Mr. Prentice said some discussions have been held with Imperial on the broad terms of the project's fiscal framework, but more in-depth negotiations will not get under way until new cost estimates have been announced.
Talks with Ottawa were delayed a year ago because of the federal election that resulted in the defeat of the Liberal government.
Mr. Prentice said he is observing developments in Alaska, where governor Sarah Palin has offered as much as US$500-million in incentives to help defray permitting costs and encourage construction of the proposed Alaska Highway gas pipeline.
He would not say whether Ottawa would be willing to step up with similar incentives.
"We will wait and see in the days after Imperial and other proponents put forward the costs of the project," he said.
He noted Ottawa has already helped the project in other ways, such as by pledging $500-million in socio-economic funds for the advancement of aboriginal people and by incurring large costs related to the regulatory review.
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