CALGARY - The lead partner in the Mackenzie natural gas pipeline says it is still committed to developing the project, despite a report suggesting Ottawa may yank its financial support.

Imperial Oil Ltd. (TSX:IMO) spokesman Pius Rolheiser says his company has heard nothing new about a financial package the federal government offered the pipeline's backers several months ago.

He says discussions are continuing between Ottawa and the project's backers, which also include Imperial's parent company ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS), ConocoPhillips (NYSE:COP) and the Aboriginal Pipeline Group.

Natural gas shipper TransCanada Corp. (TSX:TRP) is also involved through its investment in the APG, which acts on behalf of aboriginal groups along the pipeline's proposed route.

The 1,220-kilometre pipeline, most recently estimated to cost $16.2 billion, would carry natural gas from the Mackenzie Delta in the Northwest Territories south to the Alberta border, where it would connect with TransCanada's network.

It has long been beset by regulatory delays and cost overruns, and faces the prospect of being overshadowed by a much larger natural gas pipeline proposed in neighbouring Alaska.

A service of YellowBrix, Inc.