Oil and Gas


Oil is produced in Norman Wells, one of Canada’s richest oil fields. Natural gas is largely extracted from various fields in the southern NWT as well as at the Ikhil project near Inuvik, and Norman Wells. Volumes of oil and gas production are continuing to decline, however the record oil prices have offset the production decline.

Exploration in the offshore NWT is an opportunity currently being pursued, with two projects currently undergoing, the Imperial Oil Resource Venture Limited’s Ajurak project and the British Petroleum Exploration Company Limited’s Pokak project. 

Mackenzie Gas Project

The proposed Mackenzie Gas Project (MGP) will begin in the Mackenzie Delta and end in northwestern Alberta. It will initially transport 0.8 to 1.2 Billion cubic feet per day (bcf/day) of natural gas, enough to heat half of NWT homes for a whole year. The gathering system will be expandable to 1.9 bcf/day. A natural gas liquids pipeline will be built in the same right-of-way between Inuvik and Norman Wells.