Canadian Environment Minister Jim Prentice wants to assure everyone that the Mackenzie pipeline project, while delayed, is back on track. In an interview with Reuters, Prentice had this to say about the pipeline project: “I’m actually very optimistic because a lot of the work that needed to be done has now been done”. Back in 2005, it was projected that the Mackenzie pipeline would be two years ahead of the proposed Alaska pipeline. Prentice now says that the Mackenzie project is closer to five or six years ahead.

Despite several delays in the project, Prentice is very optimistic that the Arctic gas line will go ahead and that most of the lengthy delays are behind it. The latest delay occurred in May, when a major regulatory report examining the environmental and social impacts of the pipeline was pushed back from October, 2008 into 2009. The report is expected by Prentice some time between March and May, 2009.

In the meantime, Imperial Oil Ltd and the other backers of the gas pipeline have been in discussion with Ottawa regarding their request for the financial breaks needed to make the gas line project economically feasible.

The financial aspect of the project is one huge detail that could see another delay in the project. According to Prentice; “Pending receiving the environmental Joint Review Panel work, the fiscal framework continues to be an outstanding issue”. There is a wealth of gas in and around the Arctic, and the problem quite often with gas line and offshore drilling projects is getting government funding. With economies crashing worldwide and governments getting stricter about their lending, it may become tougher for projects to get off the ground.

This positive spin on the future of the Mackenzie pipeline comes mere weeks after it was reported that the project was stalled indefinitely. On November 19^th of this year, Bob Reid, president of the Aboriginal Pipeline Group said, when speaking about the MacKenzie pipeline project; “It’s a changing environment, and it remains to be seen what our future will be. There has been no agreement that I am aware of and nothing to report”.

With conflicting reports regarding the Mackenzie pipeline coming out so close to one another, it is hard to know if this project will ever see the light of day.