Mackenzie gas pipeline OK'd by NEB - CBC.ca website
The long-awaited ruling from the National Energy Board has come: The MVP has official approval, albeit with some conditions. I haven't had a chance to review them yet, but I'd suspect there aren't any serious deal-breakers.
The approval goes to cabinet now, but any significant changes are seen as unlikely.
Some analysts are mistakenly seeing this as a competing line with the Alaska Highway line, which simply isn't the case. Different markets, different purposes, and access to different fields. Both are viable under the right circumstances.
And would would those "right circumstances" be? Well, the MVP gets built first, and gets a few years of having the market to itself while the Alaska line continues development. During this period, it should show a healthy profit and a decent return to investors. The gas it supplies will also help cover current declines in the Western Canada Sedimentary basin. As the Alaska line starts bringing gas onstream, the MVP will have already paid a considerable portion of its own capital costs and have established fields from which to ship.
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