Current Press Releases

Ladies and Gentlemen, welcome to the Second Session of this year’s Inuvik Petroleum Show.

Before I begin, I would like to thank Mayor Lindsay for his hospitality and the organizers for coordinating this event.

This is the 9th time that we have gathered for this event since its inception.

I have been asked today to speak about the GNWT’s perspective on the future of the Mackenzie Gas Project, a project that is essential to both our economic and environmental futures.

Previously, you have heard from my colleague, the Honourable Premier Floyd Roland, about our government’s concern for taking action now when it comes to developing the resources of the North.

I share his opinion and would like to join him in sending out the message that the Government of Northwest Territories recognizes the sustainable development of these resources is essential to the long term security, self-sufficiency and social well being of our residents. We must not miss this window of opportunity; we must not miss this train that will otherwise stop at a different destination. Time waits for no one.

As you all know, the Mackenzie Gas Project represents the largest single investment in the NWT’s history and can provide unprecedented opportunities to diversify and expand the NWT economy and contribute to a more robust and sustainable economic future for our Territory.

It is critically important for us to see this Project built, so our children and grandchildren can continue to live and prosper in our beautiful land.

Our continued expectation is that Arctic Gas development will proceed and that the construction of the Mackenzie Gas Project will represent the beginning of an era of unprecedented prosperity in the NWT. It will result in many thousands of jobs in the NWT and Canada and will provide opportunities as a bright spot for the Canadian economy.

It is an important project for Canada. It means Alberta would see an increase in GDP of $9.9 Billion and Ontario would see a GDP benefit of $5.1 Billion from the construction and operation of the Project. This project could be the key our country needs to get out of this economic slump we find ourselves in.

The Americans have figured this out. Based on recent announcements and pending incentives, the Alaskan Pipeline is getting poised to be the economic stimulus project for the United States. Our country cannot afford to miss out on the opportunities the Mackenzie Gas project holds for our nation.

Therefore, allow me to present to you today a vision of the future: imagine for a moment that you took a step forward in time, and it is now 2014. We’re a year and a half into the construction of the MGP. What do we see around us?

We see tremendous activity in the Mackenzie Valley. The Pipeline Proponents have moved strongly and decisively following a positive regulatory decision and a successful conclusion to discussions with the federal government, managed to take advantage of lower prices for steel and a more positive labour situation to make major expenditures that have brought the overall capital costs in at less than those predicted in 2007.

We see that all of the anchor gas fields are being actively developed and all regions, having successfully concluded Access and Benefit Agreements and finalized their ownership of the Aboriginal Pipeline Group, are fully engaged in the employment and business opportunities the Project is bring to our Territory. The entire NWT is reaping the benefits of this Project, as provided for by our Socio-Economic Agreement and the commitments of the Proponents.

We see Governments which have promptly responded to the challenges of the Project and the Mackenzie Gas Project Impact Fund has been flowing funds through the Regions of the NWT.

We see northerners who hold full time, income generating jobs, who can support their families and live happy, prosperous lives. We see companies being awarded numerous contracts and expanding their business. We see communities thriving and growing.

But in order to see all that, we need to face the challenges of getting there first.

In the past 4 years, we have made significant advances towards preparing our residents, businesses and communities to take advantage of the opportunities that this Project will offer.

Our government has worked to support communities as they prepare for the construction and operation of the pipeline and the developments that will follow. We have established a variety of funding and training programs that are geared towards maximizing benefits and minimizing impacts.

All of these programs are meant to help NWT residents be well positioned to take advantage of exploration and development that will be induced by the Project. They are meant to help create a “northern” work pipeline force, with a unique northern expertise and training to take advantage of northern gas pipeline jobs anywhere.

We signed a Socio-Economic Agreement with the Project Proponents which will result in employment and business opportunities, training, reporting and will serve to mitigate impacts on our roads, health care, and social support systems.

And what better way is there to assert our sovereignty to the North and its land and waters as to have strong communities buoyed by an economic base from the development of our own resources?

Therefore, the development of Arctic natural gas will provide a means to support greater independence and self-reliance among our people.

The Aboriginal Pipeline Group is a new model of participation in the NWT economy that is working to maximize shared ownership and benefits for Aboriginal people through an unprecedented opportunity to earn a one-third stake in the proposed pipeline.

It is one example of how business has taken an interest in the proposed Mackenzie Gas Project and has set the bar for a new model of Aboriginal and northern participation in our economy.

Since its formation in 2000, the Government of the NWT has provided constant and substantial support to the APG. I am happy to announce that around 4:30 this afternoon at the APG booth in the trade show area I will be taking part in a signing ceremony confirming the GNWT contribution for 2009/10. I’d like to advise you that there will be an opportunity at that time for both I and representatives from the APG to take a few questions.

Our Government’s efforts to support the Mackenzie Gas Project continue to this day. We’re currently focusing on preparing for the permitting phase of the Project and coordinating our efforts with other Regulators in this regard.

We are also investing significant human and material resources into preparation for a timely response to the Joint Review Panel Report, which we expect will be filed in December, a short six months from now.

So far, several encouraging signals have been received from the Federal Government. I am happy to say that the Project’s importance has been clearly recognized by Canada’s Environment Minister – the Honourable Jim Prentice, whose leadership and support will be continue to be needed to ensure that this Project moves forward.

Minister Prentice indicated that the Federal Government is working closely with the Proponents of the Mackenzie Gas Project to ensure that the financial conditions were right to move forward with this Project following the Regulatory process.

Additionally, the Federal Government committed $ 37.5 million in their budget to ensure that the regulatory process could continue to conclusion and federal Departments could continue to work on the Project in this fiscal year.

These are strong signals that the Federal Government is prepared to support the Mackenzie Gas Project as one of the cornerstones of the new Canadian economy. Clearly this Project is of the utmost importance to Canada and indeed to the energy future of North America.

In fact, this Project and those to follow will provide sustainable economic activity that will help put northerners and Canadians back to work as our economy recovers from the current downturn.

Back home, here in the North, we must all understand that the MGP represents our best option to enhance opportunities for our youth and ensure that the population of the Northwest Territories grows in the future.

The MGP will potentially also offer us the opportunity to reduce the cost of living through gas conversion and contribute to reducing greenhouse gas emissions, , not only in the Northwest Territories, but across North America.

These are just some of the reasons why this Government continues to support the Project, and our objective remains to see it completed in a manner that minimizes potential impacts and maximizes benefits to all people of the Northwest Territories.

On the other hand, I understand and acknowledge the frustration expressed by some companies in recent times. Lack of progress on the regulatory proceedings for the Mackenzie Gas Project continues to be problematic for NWT businesses and workers who have anticipated a greater level of activity and opportunity by this time.

The downturn has taken its toll on our economy but this time of economic transition is also providing us with one of the biggest opportunities that we have had in some time. It has cast a spotlight on our Territory – and on our resources and our potential.

We are a jurisdiction whose economic potential and success still promises to have direct and significant positive impacts on other provinces in Canada.

With as much as a quarter of the world's undiscovered oil and gas under the Arctic landscape – our sometimes over looked corner of the map has suddenly garnered the full attention of a hungry and growing continental energy market.

Response to this attention can be seen in the proposal for the MGP as well as two proposals for a pipeline to deliver Alaskan North Slope natural gas to a hungry continental market. The US government has committed to loan guarantees for an Alaskan Project which underscores the importance they place in Arctic Gas.

In addition, production of clean Arctic natural gas is crucial to the global response to climate change. We believe that production of our gas will contribute to the lessening of greenhouse gas emissions and help make the transition to a sustainable energy future in North America.

We all know what needs to be done on the MGP to get from today to the day the first shovel hits the ground, and beyond. Despite the long process, we are focussed on the goal of diversification, social and economic strength, and a bright future for current and future generations of NWT residents – those who live here today and those who will be drawn to our bountiful, exciting, and dynamic land.

Once finished, the MGP would strategically position our country as never before. It will spin off incredible economic activity, assisting all sectors and many parts of Canada.

It will cement our position as an international resource producer.

And it will assert our sovereignty over our Arctic lands and resources in a real and tangible way.

For the residents of the NWT, the Mackenzie Gas Project will represent a once-in-a-millennium opportunity to build a healthy, prosperous and vibrant livelihood.

Therefore, if the appropriate action is taken, our economy is poised to burst forward in a tremendous and extraordinary rush – one that will signal the beginning of an incredible future for the people and communities of the Northwest Territories.

I thank you ladies and gentlemen for your time, and I invite you to become part of our vision and contribute your strength and enthusiasm to achieving this future of the Mackenzie Gas Project.

Thank you – Mahsi cho – Quyanainni.