BY IAN MCKINNONBloomberg News
Imperial Oil Ltd.’ s proposed $18-billion pipeline to tap natural-gas reserves in Canada’s Arctic is “uneconomic,” Tristone Capital Inc. said yesterday.
The project may need as much as $2-billion in government financial aid or incentives such as accelerated depreciation to proceed, Calgary analyst Chris Theal says in a report. Failure of Canadian agencies and companies to agree on fiscal terms may delay development by up to 15 years, the report says.
The project’s price tag means it will cost about US$5.78-per million British thermal units to develop 6.1 trillion cubic feet of reserves, Mr. Theal estimates. That’s about 8.4% more expensive than importing supplies of liquefied natural-gas imports, he says.
“Under the current fiscal regime, there is no economic incentive to build the Mackenzie Valley pipeline,” Mr. Theal says.
Imperial, owned 70% by Irving, Tex.-based Exxon Mobil Corp., leads a group proposing a 1,220-kilometre conduit to move 960 million cubic feet a day of Arctic gas to northern Alberta to connect to the North American pipeline grid.
Other partners in the project include Exxon Mobil, Shell Canada Ltd., ConocoPhillips and the Aboriginal Pipeline Group, which represents some northern native bands.
Calgary-based Imperial, Canada’s largest oil company, last month said the project’s cost had more than doubled to $16.2-billion. Mr. Theal said his higher estimate includes allowances for funds used during construction, without elaborating.
Provincial and federal governments may need to offer loans, accelerated depreciation or pay for common infrastructure such as roads, airstrips and barge landings to convince Imperial and its partners to proceed with the project, Mr. Theal says. Such moves may help lower supply costs to below US$5 per million Btu.
At that price, “the Mackenzie Gas Project can compete with alternative supply sources and generate an acceptable rate of return for the project proponents,” the report says.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
