December 15, 2011 - Mr. Speaker, Members of this Assembly set out a vision of strong individuals, families and communities sharing the benefits and responsibilities of a unified, environmentally sustainable and prosperous Northwest Territories. Strengthening and diversifying our economy is one of the ways we can help to realize that vision and Members noted the need for strategic infrastructure investments and for supporting the Mackenzie Gas Pipeline as part of this. The Government of the Northwest Territories has long supported the Mackenzie Gas Project. In 2004, Members of the 15th Legislative Assembly passed a motion in support of the project and our support continues to this day. It is our position that a well-managed project can create substantial benefits for the people of the Northwest Territories, while ensuring any potential impacts are mitigated.
The pipeline will create unprecedented economic activity during the construction and operation phases, lead to an immediate doubling of the Northwest Territories Gross Domestic Product for up to 25 years and provide over 208,000 person years of employment. In addition, this will be a basin-opening project that would provide a $100 billion increase in Canada’s Gross Domestic Product. With the implementation of a final Devolution agreement, the Government of the Northwest Territories will secure a share of the resource royalties from this and other resource development projects in the Northwest Territories.
Mr. Speaker, the benefits of the Mackenzie Gas Project will not only be economic. The Mackenzie Gas Project will also offer the opportunity for some communities in the Northwest Territories to convert to natural gas for heating and power generation. Usage of natural gas means displacement of dirtier coal and diesel powered electricity generation.
Converting to natural gas in the Northwest Territories will be more economical. Perhaps more important, we anticipate that conversion to natural gas will mean a significant reduction in greenhouse gas emissions.
The Mackenzie Gas Project is ready to go; the major regulatory and environmental assessment reviews have been completed. The Government of Canada also approved the Project in March 2011, and as a result, the National Energy Board issued a certificate of Public Convenience and Necessity.
The project proponents, Imperial Oil, the Aboriginal Pipeline Group, ConocoPhillips, Shell Canada and ExxonMobil Canada, have the necessary authorization to start construction of the pipeline. They have until December 2013 to provide updated cost estimates and a decision to proceed with the Mackenzie Gas Project.
The next step is for the Federal government and the Project proponents to negotiate a fiscal package. The Government of the Northwest Territories will continue to urge the Federal government to come up with a fiscal package to support the Mackenzie Gas Project. We have confirmed that discussions on a fiscal framework are under way between project leader Imperial Oil and the Canadian government.
The Aboriginal Pipeline Group is a business created and owned by Aboriginal groups in the Northwest Territories, and has secured a right to own one third of the Mackenzie Valley natural gas pipeline. This is the first time that Aboriginal groups in Canada will participate as an owner in a major, multi-billion dollar project. By being part of the Mackenzie Gas Project, the Aboriginal Pipeline Group is making history.
The path blazed by the Aboriginal Pipeline Group has set the bar for a new model of Aboriginal participation in the economy through its shared ownership in the Mackenzie Valley Pipeline. The Project is expected to pay out millions of dollars in dividends to the Aboriginal Pipeline Group and Aboriginal owners in the Northwest Territories over the lifetime of the Project.
Mr. Speaker, we waited for six years for the Mackenzie Gas Project to work its way through the environmental and regulatory review process and it has now been approved by the federal government. In those six years there were investments made by this government, businesses owners and individuals to prepare for the pipeline. I believe those investments will see a significant return.
We are closer now than we have ever been to finalizing this basin opening project. In its recent report on Canada’s Energy Future, the National Energy Board stated that by 2020 the price of natural gas will be high enough to make the project economically feasible. With the cooperation of the proponents and the federal government we expect to see construction of the pipeline start in 2015. The Government of the Northwest Territories will continue to support the Mackenzie Gas Project and look forward to the benefits that will accrue to our residents from its development.
Thank you, Mr. Speaker.