Shale gas boom slows Mackenzie pipeline
Apr 09, 2012 | 02:56 PM
| Michael Cowden
TORONTO Spending and activity on a massive natural gas pipeline in northern Canada have been scaled back in part due to burgeoning shale gas production elsewhere in North America.
Despite the cuts, the Canadian $16.2-billion ($16.22 billion) Mackenzie Valley natural gas pipeline is not dead and not even on hold, a spokesman for Calgary, Alberta-based Imperial Oil Ltd., the operator of the project, told AMM.
"Just to be clear, the project is still alive," said a spokesman for Houston-based energy firm ConocoPhillips Co., another stakeholder in the project.
ConocoPhillips announced last week that it expected to take a $525-million after-tax writedown during the first quarter of 2012 on the Mackenzie pipeline as well as associated gathering systems and the Parsons Lake natural gas field in Canadas Northwest Territories. Parsons Lake is one of the primary reserves in the region, with ConocoPhillips holding a 75-percent stake and Irving, Texas-based ExxonMobil Corp. holding the remaining 25 percent.....
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