If Ottawa does not offer loan guarantees for the construction of the Mackenzie pipeline, it risks watching the $16.2-billion project stall and the rival Alaska natural gas line overtake it, N.W.T. Industry Tourism and Investment Minister Bob McLeod warned yesterday.
Momentum in the Arctic gas race has shifted to the Alaska line, with supermajor Exxon Mobil Corp. joining TransCanada Corp.'s bid to build that $26-billion (U.S.) project and U.S. legislators working to issue $30-billion (U.S.) in loan guarantees.
Now Mr. McLeod says Canada must match that offer with a $20-billion Mackenzie federal pipeline loan guarantee that would boost the economics of the project.
"If we don't have a level playing field how can we compete?" Mr. McLeod asked. "Whatever the American government is doing, we should be doing. Because we really believe that Canadians would not be happy if American natural gas was transported through Canada while our Canadian N.W.T. gas was stranded."
The Mackenzie line could die if it's not built before the Alaska project, Mr. McLeod said.
© The Globe and Mail
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