A $3 billion proposal to build a natural gas pipeline along the Mackenzie River delta in northern Canada has passed nearly every hurdle but one: a weak economy. While native groups in the region initially opposed the project, most have now decided to support the pipeline. In fact, the Aboriginal Pipeline Corporation, newly formed by 30 native leaders, will join Imperial Oil, Shell Canada, ExxonMobil Canada, and Conoco Canada in the massive project, provided it can get the loan guarantees for $630 million it needs from the Canadian government. The pipeline would chiefly supply the gigantic U.S. market, which is currently depressed. Analysts say that in the long run, the project will likely go ahead. A competing proposal to run the pipeline through Alaska is unlikely to succeed, with the relevant bill for subsidies and loan guarantees stalled in Congress.
