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Imperial Oil weighs Mackenzie gas project revamp – The Globe and Mail

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Imperial Oil Ltd. is looking at a major revamp of its Mackenzie gas project that would see the stalled northern venture reborn as part of an expansive liquefied natural gas development, the company’s chief executive officer says.

A shift to LNG is under “serious” consideration as the Mackenzie pipeline’s economics remain weak due to the flood of cheap shale gas across the continent, chief executive officer Rich Kruger said in an interview at the company’s Calgary headquarters.

Imperial and its partners in the Mackenzie pipeline plan are just a couple months away from a deadline to provide regulators with an updated cost estimate and progress report on a decision to move forward on the long-delayed plan to send gas to North American markets via a 1,196-kilometre pipeline.

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