GREY:MGMCF - Post by User
Comment by
OilEngon Dec 22, 2013 9:38am
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Post# 22031122
RE:road to the Arctic Ocean takes shape
RE:road to the Arctic Ocean takes shape
The Inuvik to Tuktoyaktuk highway provides access to MGM, Esso and Conoco's Mackenzie Delta gas fields. It also provides partial access to Shell's field. This will substantially reduce development costs for the drilling of new wells, gas gathering system and gas plants i the Delta.
The next piece of infrastructure is the road from Dempster south of Inuvik to Wrigley. This part of the highway follows the same Right of Way as the Mackenzie Valley Pipeine. This will significantly reduce the cost of the pipeline. The envirormental Assessment has been underway for the last year. Once that is complete, the Federal Government has to decide if they are going to fund the highway. The section from Wrigley to Norman Wells is the section (about 1/2 of the total lenght) that will make a big difference to the Canol.
In order for Mackenzie Delta Gas to make sense, prices still need to be around $7/mcf at Henry Hub to make this project economic. We are long ways from that.