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ALCAN/DEMPSTER GAS PIPELINE PROPOSAL
This proposal is the sixth northern pipeline proposal put forward by
Alberta Gas Trunk Line Company Limited in six years, their third in the
last 12 months. It proposes a pipeline to carry Alaskan gas from
Prudhoe Bay across the Yukon Territory and western Canada to the United
States. At some unknown future date, it would be expanded to include a
spur line from the Mackenzie Delta along the Dempster highway to carry
Canadian gas to Canadian markets. The current proposal before the NEB
does not include an application to build this spur.
Timing
Construction of the Alcan line would start as soon as approvals are
received and would probably be completed within the same time frame as
the Canadian Arctic Gas proposal.
If, at a future date, the decision is made that the Alcan line should
transport Canadian gas also, a substantial section of the original line
would have to be expanded. Financial consultants believe that those
financing the Alcan line would want to see the system built and operating
before they would consider expanding it to transport Canada's gas.
Because of this, it is possible construction of the Dempster spur would
not start until at least two years after the Alcan line begins operation.
This would mean that Mackenzie Delta gas would not start flowing south
until 1987 or 1988, five or six years later than the start-up date
proposed in the Canadian Arctic Gas timetable.
Construction and Operating Costs
The Alcan/Dempster route would be about 835 miles longer than the
proposed Arctic Gas route. At initial capacities the Alcan/Dempster
line.
line would cost nearly $2.5 billion more to build than the Arctic Gas
The Dempster spur line to the Mackenzie Delta would carry only Canadian
gas. Because of this and other factors such as overall distance, the
costs of transporting Delta gas would be higher than transmission by
the Arctic Gas line by something like 40 cents a thousand cubic feet.
At 14 billion cubic feet of Delta gas a day, this is an additional cost
of nearly $200 million a year.
Source: https://www.industrydocuments.ucsf.edu/docs/pag10228

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