Imperial Oil says Mackenzie Valley project to cost $20B

|By:, SA News Editor

Imperial Oil (IMO) has told regulators the estimated cost of its long-delayed Mackenzie Valley project has increased more than 40% to at least $20B since its last tally almost seven years ago, and that it has no idea when North American gas markets might turn around to rescue the project from limbo, the Globe and Mail reports.

IMO is studying the potential for Mackenzie gas to fit into a broader strategy to feed liquefied natural gas export plants on Canada’s west coast, though that could be years off.

IMO’s partners in the Mackenzie project are Royal Dutch Shell (RDS.A, RDS.B), ConocoPhillips (COP), Exxon Mobil (XOM) and the native-owned Aboriginal Pipeline Group; IMO is controlled by XOM.