Shell exit Mackenzie gas pipeline project in Canada

Shell to exit Mackenzie gas pipeline project in Canada

12:53 PM, 19th July 2011
Shell to exit Mackenzie gas pipeline project in Canada

CHINA TOWN, SINGAPORE: Shell will sell its stake in the $17 billion Mackenzie Gas Project, a Canadian pipeline project, the latest sign that the project, designed to bring natural gas from Canada’s Arctic coast to North American markets, may be in danger.

Shell owns an 11.4 per cent stake in the project and said the decision to sell its stake was part of its normal review of its assets, the Wall Street Journal reported. Potential buyers for Shell’s Mackenzie stake were not mentioned.

On Monday, Shell Canada spokesperson, Larry Lalonde said in an email the company has offered a “Broad group of prospective purchasers” information on its assets.

“Shell still believes the project is important for Canada,” said Lalonde, not elaborating on the firm’s decision to get out.

ConocoPhillips and Imperial Oil are Shell’s partners on the project and neither have signaled a commitment to move forward with the project. Preliminary work on the Mackenzie gas pipeline was suspended in 2007 due to regulatory hurdles with the project finally gaining finally approval last year following a six-year review process. Imperial holds a 34.4 per cent stake in Mackenzie and is the project’s primary operator.

(C) WOC News




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