The Mackenzie Gas Project is set to move ahead after the National Energy Board approved its construction and operation.
The announcement was made Thursday. The $16 billion project would consist of a 1,198 kilometre long pipeline running from the Beaufort Sea to northwestern Alta. There will also be a 457 km natural gas pipeline running between Inuvik, NWT and an existing pipeline at Norman Wells, NWT, as well as similar facilities.
The pipeline is expected to carry approximately 34.3 million cubic metres of natural gas every day. That amount would be enough to supply two-thirds of the six million Canadian households that use natural gas.
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However, the independent federal agency has attached 264 conditions to the project’s approval that must be met by the pipeline’s operators.
The project was first proposed by a consortium made up of Imperial Oil Resources Ventures Limited, the Mackenzie Valley Aboriginal Pipeline Limited Partnership, Imperial Oil Resources Limited, ConocoPhillips Canada (North) Limited, Shell Canada Limited and ExxonMobil Canada Properties.
If the project is eventually built, the proponents would still be required to obtain permits and authorizations from other government agencies.