Mackenzie Valley gas pipeline in doubt?

OTTAWA, Oct. 28 (UPI) -- The Canadian government refused financing for the Mackenzie Valley natural gas pipeline as shale deposits in the Lower 48 become more abundant, sources said.

Canadians have eyed the $16.2 billion pipeline from the Beaufort Sea to markets in Alberta as a viable option for consumers for more than 40 years.

The government in its last budget set aside $38 million to move ahead with the environmental and regulatory work on the 758-mile pipeline.

Market analysts, meanwhile, say that while there is an estimated 7 trillion cubic feet of gas reserves in the Beaufort Sea, there are more than 1,000 trillion cubic feet of gas locked up in shale deposits in the Lower 48.

Sources to Canada's National Post newspaper say Environment Minister Jim Prentice proposed a financial assistance package for the pipeline to Cabinet, but that was turned down.

Prentice responded to questions saying that "no decision" was made.