08/27/2015 11:37 EDT | Updated 08/27/2016 01:12 EDT

Imperial has hopes for long-dormant Mackenzie Gas project in Canada's Arctic

CALGARY — Imperial Oil is looking to keep alive its long-dormant Mackenzie Gas Project in Canada's Far North by postponing its construction for several years.

The lead partner in the plan to tap into Arctic natural gas fields has asked for a seven-year extension to a permit from the National Energy Board.

When Mackenzie obtained federal approval in 2011, it was given until 2015 to begin construction. 

But that's not a feasible in today's market conditions, with natural gas prices about half what they were when the regulatory application was first filed in 2004.

Imperial (TSX:IMO) has submitted an updated schedule with a 2022 start date and a 2026 completion date with the National Energy Board.

The Canadian Press