Yukon's 7 Key Pipeline Interests
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1. Fiscal Advantage
Construction and operation of northern natural gas pipelines must ensure a lasting net fiscal benefit to Yukon and its people.
Key Points:
- Yukon should not be put at a financial disadvantage where project-related costs to Yukon exceed revenues realized. Implications to Formula Financing and revenue sharing with Canada and First Nations are particularly important elements.
- Yukon will incur significant social, financial and environmental costs from construction and operation of the MGP and AHPP, in particular the AHPP.
- Potential fiscal benefits include, among others: employment and business opportunities, marketing Yukon’s natural gas, and government revenue.
- Potential undesirable impact costs include, among others: increased costs of social programs due to increased crime and alcohol and drug-related problems, and increased costs to environmental programs due to increased monitoring of fish and wildlife populations.
2. Social Investment
Construction and operation of northern natural gas pipelines must ensure social impacts are minimized and mitigated to the greatest extent possible and provide for lasting social improvements.
Key Points:
- Construction and operation of the MGP and AHPP, particularly the AHPP, will result in social impacts in Yukon.
- Potential desirable impacts include, among others: employment and business opportunities, and government revenue.
- Potential undesirable impacts include, among others: increased crime, alcohol and drug-related problems, and increased housing and education pressures.
3. Environmental Stewardship
Construction, operation and decommissioning of northern natural gas pipelines must ensure environmental impacts are minimized and mitigated to the greatest extent possible.
Key Points:
- Construction and operation of the MGP and AHPP, particularly the AHPP, will result in environmental impacts in Yukon.
- Potential impacts include: slope and soil stability in permafrost areas, greenhouse gas emissions from compressor stations, noise disturbance on wildlife, wildlife habitat alteration, and fish and water quality at river crossings.
4. Community and First Nation Interests
Construction, operation and decommissioning of northern natural gas pipelines must ensure community and First Nations interests are an essential component and taken into account to the greatest extent possible.
Key Points:
- The potential socio-economic and environmental impacts associated with construction and operation of the MGP and AHPP will affect most Yukon communities and First Nations, in particular those along the AHPP route.
- Yukoners and Yukon First Nations must have significant input into the pipeline planning process from beginning to end.
- Most Yukon First Nations have completed final land claim agreements and are now self-governing. Involvement in the regulatory processes and government consultation must be consistent with the agreements.
- Most Yukon First Nations along the AHPP corridor are members of the Alaska Highway Aboriginal Pipeline Coalition (APC) which was formed to prepare for the AHPP.
5. A Clear and Efficient Regulatory Process (AHPP)
The regulatory process in Canada must be clear and efficient to advance the Alaska Highway Pipeline Project, provide for adequate Yukon participation, and ensure a rigorous environmental and socio-economic impact assessment.
Key Points:
- Alaska’s North Slope Producers have indicated they require a clear and efficient environmental assessment and regulatory process with aboriginal support. They have stated a preference for the ‘traditional NEB’ process.
- A project under the Northern Pipeline Act (NPA) is also being advanced by TransCanada Pipelines.
- Regulatory certainty is required for both options to ensure economic certainty before and during construction.
- YESAA, and other legislation, will provide guaranteed participation for Yukon residents.
- The NPA and NEB are different regulators with different processes for socio-economic and environmental assessment.
- Yukon has not expressed its support for either process, however, has identified the advantages of the NPA, including the existing easement through Yukon.
- The APC is an important coordinating body to help achieve regulatory certainty.
6. Connecting Yukon’s Natural Gas
Construction and operation of northern natural gas pipelines must ensure Yukon’s natural gas resources have access to the MGP and AHPP so they can be economically shipped to markets and sold.
Key Points:
- With the exception of the Liard Plateau in southeast Yukon, which is currently serviced by the Duke pipeline, the natural gas resources located in the remaining seven petroleum basins are stranded from markets.
- Recent Geological Survey of Canada resource assessments for Yukon’s eight sedimentary basins indicate there is an estimated 20 Tcf of natural gas in Yukon (12.7 Tcf in north Yukon basins, 2.5 Tcf in Whitehorse Trough, and 4.8 Tcf in southeast Yukon). Most (approx. 75%) of our natural gas resources currently have no means of getting to markets.
- Both the MGP and AHPP must adopt toll designs that create favorable economics that will facilitate the opening of Yukon’s basins.
7. Access to Energy from Pipelines (AHPP)
Construction and operation of northern natural gas pipelines must ensure Yukon has appropriate access to natural gas for residential, commercial and industrial use in Yukon at favourable terms.
Key Points:
- Yukon’s energy requirements are presently being met almost entirely by imported oil and Yukon hydro.
- Hydro facilities in Whitehorse, Aishihik Lake and Mayo provide electricity for the majority of Yukon communities, including Whitehorse, while the remaining 6 communities that are off-grid rely on diesel for electricity generation.
- Access to natural gas energy from the pipelines would significantly help advance northern resource development, particularly in the mining sector.
- Yukon access to natural gas energy for the residential and commercial sectors could displace diesel in power generation and space heating which would likely result in cost savings and reductions of greenhouse gas emissions.
- Energy from natural gas could be used for, among other applications: electricity generation using combined heat and power systems and propane heating.
Last Updated 28-02-2006
