OTTAWA - Canada will be able to exert pressure on the U.S. government to prevent subsidies for building a natural gas pipeline across Canada to the Lower 48, Northern Development Minister Robert Nault said Thursday.
Nault said providing a loan guarantee for the pipeline owners was "a legitimate approach to take."
If the United States subsidizes the line from the North Slope, it could draw investors and capital away from the Mackenzie Valley project and delay its construction for years, Canadian officials say.
Nault met with U.S. industry and government leaders on Thursday in Washington to emphasize that Canada is ready to review a proposal for construction of a Mackenzie Valley natural gas pipeline.
If built, the Mackenzie Valley pipeline would be one of the longest in North America, stretching from the Mackenzie Delta northwest of Inuvik in the Northwest Territories to northern Alberta.