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The Arctic: Canada among several nations in tussle over territorial rights to resources in the environmentally sensitive region.

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'MacKenzie key plank to Arctic rights'

The approval of the MacKenzie Valley natural gas pipeline should be viewed as a key plank to demonstrate Canadian sovereignty over its Arctic lands and waters, according to the Northwest Territories energy minister.

"We think the Canadian government needs to find the political will to make sure the Mackenzie pipeline goes ahead," Bob McLeod was cited in a Reuters report.

"It's not just about money, it's about creating jobs, lower fuel costs for Canadians, and it will open up the north for exploration," he said.

The C$16.2 billion ($14.7 billion) pipeline project is aimed at transporting up to 1.9 billion cubic feet of gas per day from the Mackenzie River Delta in Canada's Far North to southern markets.

The project is stalled as the line's backers, led by Imperial Oil, wait for an overdue regulatory report, according to Reuters.

It is also reportedly held back by negotiations between the consortium and federal government on the fiscal terms.

McLeod is calling the federal government to offer more concrete backing since the US has offered $30 billion in loan guarantees for a larger rival project that would take Alaskan gas to market.

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