Imperial Oil Canada has put back another two years a decision on the Mackenzie Delta natural gas pipeline project.
The oil and gas producer and lead proponent of the controversial pipeline said Monday it needed extra time to make a commitment to the project, pending the National Energy Board's decision this fall on the Arctic pipeline and favourable fiscal terms.
"This revised start-up timing reflects regulatory delays, lack of a fiscal agreement, project restaffing requirements and seasonal constraints," Imperial said in a letter to the National Energy Board. "Timely actions by all parties, including the proponents, governments and regulators, will be essential to achieve this schedule."
Almost a decade has passed since Imperial first filed plans on the 1,200-kilometre pipeline with federal energy regulators. Since then, cost estimates have ballooned to more than $16 billion and natural gas prices have tumbled.
Imperial said it would know by late 2013 if it will proceed with the line which would ship Arctic natural gas from the edges of the Beaufort Sea south to Alberta and beyond.
If given the green light, the pipeline could be commercial by 2018, about six years behind original plans.
Also on Monday, the federal government filed an additional five volumes of updated reports on Aboriginal consultation activities around the Mackenzie project.