Halliburton's Kellogg Brown and Root unit and the closely held Colt Engineering has won a contract for preliminary engineering work on a pipeline that would carry natural gas from fields in Canada's Arctic area. The engineers will study the design of the Mackenzie Gas Project, which involves developing gas resources in the Northwest Territories, a group of gas producers said in a statement. The gas would be shipped by pipeline through the Mackenzie Valley to existing lines in Alberta that carry gas to the US. Imperial Oil, ExxonMobil's seventy percent owned Canadian unit, is a partner in the Mackenzie Gas Project with the Canadian units of Conoco and Royal Dutch/Shell Group. The project is expected to cost about C$7.6 billion ($4.9 billion), according to the Northwest Territories government. The engineering study will take up “a good portion” of about C$250 million the partners are spending to prepare applications to Canadian regulators for the line, Imperial spokesman Hart Searle said. He declined to be more specific on the deal.
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