FACTBOX: Key facts about Canada's Mackenzie gas pipeline

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Wed Dec 30, 2009 5:59pm EST

(Reuters) - Canada's Joint Review Panel, a regulatory body that assessed the environmental and socioeconomic impact of the Mackenzie gas pipeline, said on Wednesday that the project should be allowed to proceed if numerous recommendations are followed.

Here are some facts about the Mackenzie Gas Project.

Partners: Imperial Oil Ltd, Royal Dutch Shell, ConocoPhillips, Exxon Mobil Corp, Aboriginal Pipeline Group

Estimated Cost: C$16.2 billion ($15.4 billion)

Route: would extend through the Northwest Territories to TransCanada Corp's Alberta pipeline network from the Mackenzie Delta near the Beaufort Sea, a distance of 1,220 km (760 miles).

Gas Supply: three anchor fields in the delta, all discovered in the early 1970s, would initially supply up to 1.2 billion cubic feet a day. Reserves are currently estimated at 6 trillion cubic feet. The pipeline could be expanded to support future onshore and offshore production.

Timetable: The partners filed applications in 2004, initially targeting a start to operations in 2009. With the Joint Review Panel report completed, the National Energy Board has said it expects to hear final arguments in April 2010 and issue its decision in September. Start-up unlikely before 2014.

Hurdles: Ottawa and project proponents still negotiating a package of government fiscal support measures estimated to be worth in the billions of dollars. Unclear if all the partners still believe the line would be profitable given high costs and uncertain outlook for gas markets, especially with the shale gas boom in the United States. Momentum for a larger Alaska pipeline could move it ahead quicker and take away steel and skilled labor.

($1=$1.05 Canadian; editing by Peter Galloway)

(Reporting by Jeffrey Jones)

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