Canadian news sources reported that senior officials at Imperial Oil, the project’s lead partner, have said that the company is still in talks with the Canadian Federal Government in order to set up an appropriate fiscal scheme to ensure the project’s economic viability.

No detail on the contents of the financial support package or the status of the negotiations between the Federal Government and the companies were available. Mr Prentice would only comment that the project was a private sector venture that would proceed on an economic basis under market principles.

If approved, the Mackenzie Valley Pipeline will carry natural gas from the three main fields of Taglu, Parsons Lake, and Niglintgak along the Mackenzie Valley River to link in with the existing natural gas pipeline system in northwestern Alberta.