Sunday, July 17, 2011

Pass some Mackenzie Gas?

“Royal Dutch Shell to sell stake in Mackenzie Delta gas project.”
So read the headline published in the CALGARY HERALD, dated July 16th, 2011 and written by a Dina O’Meara.

The headline implies yet another hurdle in the almost 40 year process of the Mackenzie Gas Project (MGP). Even with a conditional approval from the National Energy Board for the MGP, seems Shell still wants out citing “asset divestiture” in a global portfolio review.

How ‘bout a review to a rescue?

“The most significant step is reaching an agreement with the federal government on a fiscal framework for the project” outlines Pius Rolheiser, Imperial Oil spokesperson whose respective company has a 33 percent interest in the proposed project with ConocoPhillips and ExxonMobil left to perhaps take up the slack. Still, will another company step up to the plate?

“It’s not exactly what we were hoping for at this time, but again, we remain very confident that there will be a buyer, and whoever it is will simply replace Shell as one of the shippers, “ says Orland Hansen, spokesperson of the Aboriginal Pipeline Group (APG). The APG includes a number of Aboriginal groups who have negotiated and settled a number of land claims along the proposed pipeline route and have been supported by TransCanada Pipelines.

Most of them must now wonder mildly, “F---" how much longer?”

“The (MGP) project still has long-term merit; however, the structural disruption of shale gas diminishes (its) viability, said Peter Tertzakian, with Arc Financial.

Will another company step up or will Canada extend its stimulus package to the north? In any case, Mackenzie gas will have to wait just a little longer…so what’s new.