Canadian regulator grants extension to Imperial Oil for Mackenzie gas project

The National Energy Board (NEB) in Canada has granted an extension to Imperial Oil Resources Ventures until 31 December 2022, to start building the long-delayed Mackenzie gas project’s Mackenzie Valley pipeline and Mackenzie Gathering System.

The extension to the sunset clause for the Mackenzie Valley Pipeline will not be effective until the Federal government approves it.

The Mackenzie gas project will ship natural gas from the Northwest Territories to northern Alberta.

In a letter to the proponents, NEB said that under the original conditions attached to the project the pipeline needs to be designed, constructed and operated safely.

On 20 August 2015, Imperial Oil applied to the board to extend the sunset clauses for seven years as companies behind the project were compelled the delay development due to low gas prices.

On 9 November 2015, NEB extended the clauses to 30 September 2016.

Last November, the board and the Government of the Northwest Territories Regulator of Oil and Gas Operations (OROGO) coordinated their respective reviews and sought public comments on the requested extensions.

It is reported that 14 groups and individuals supported the extension, while four of the parties opposed it.

As part of the Mackenzie gas pipeline project, the company proposes to develop three natural gas fields in and near the Mackenzie Delta.

The company also intends to transport the natural gas and natural gas liquids to southern markets through 1,842km of pipelines as part of the project.

Partners in the project are Imperial Oil, The Aboriginal Pipeline Group, ConocoPhillips, Shell Canada and ExxonMobil.