How good is the business deal APG has negotiated?
The Aboriginal Pipeline Group (APG) has negotiated what all its' members believe is a very good deal.
The APG borrows the money to pay for our share in the pipeline from a group of banks. The size of the loan depends on how much gas will flow in the pipeline.
Natural gas producers sign long-term shipping contracts with the pipeline and pay a fee to transport their gas from the Mackenzie Delta to Alberta.
Just like the other pipeline owners, APG receives its share of the transportation fees after the operating costs of the pipeline have been paid.
APG uses some of this money to repay the bank loans and the rest is paid as a dividend to shareholders. Our shareholders are free to use the money to the best benefit of their people. APG will not tell them how to use the dividends.
The more natural gas that is shipped in the pipeline, the more APG earns - between $10-million and $20-million per year for the first 20 years. When the loans are repaid, we could earn substantially more - up to $120-million per year!
Our shareholders are the Aboriginal groups who have signed the corporate and partnership agreements:
Deh Cho First Nation leadership decided not to participate at this time, so Deh Cho's share of 34 % will be held for them if and when they choose to participate. Ownership of the remaining 8 % has been set aside for other aboriginal groups in the Northwest Territories.
How many jobs will be created by the Gas Project?
During construction of all major parts of the project, there will be thousands of jobs for unskilled and skilled workers, as many as 8,600 at the peak construction period. There will also be many business opportunities for supplying goods and services to the pipeline construction crews and companies.
During operations, there will be jobs for approximately 50 people to work on the main pipeline directly, and another 90 to 100 to work on the production fields and gas gathering systems. There will also be job opportunities for people wanting to work for other companies exploring for natural gas and oil in the Northwest Territories.
The Aboriginal Pipeline Group has worked with our Mackenzie Gas Project partners, Aurora College, the Government of the Northwest Territories and the Government of Canada to help set up the Petroleum Operations Training Committee. Training programs have already started, and some Aboriginal people from the Northwest Territories are already getting the training they need for these jobs.
For more information about how you can get involved in a pipeline or petroleum industry training program, please call Aurora College at: (867) 777-7839 or Toll-Free at: 1-866-287-2655.
Who are the partners in the Mackenzie Gas Project?
The Mackenzie Gas Project has five partners:
Where can I find more information about the Mackenzie Gas Project?
For more information about the Mackenzie Gas Project, you can check out their website at:
Mackenzie Gas Project
