Northwest Territories MP Dennis Bevington says the proposed Mackenzie Valley gas pipeline may not be a good deal for the people of the North.

Speaking at a news conference in Yellowknife Monday, Bevington said Imperial Oil's recent decision to put talks on hold with the federal government over the multibillion-dollar project raises questions about the benefits to the North.

Imperial is concerned the pipeline will cost more than its most recent estimate of $7.5 billion, due to rising construction prices. It hopes to have a new figure to work with by the fall.

"If people have to accept less to develop the project, then the project economics are just as much in question for the people in the North as they are for Imperial Oil," said Bevington.

The company has signed access and benefits agreements with most of the aboriginal groups in the valley along the pipeline route. However the Deh Cho and part of the Sahtu region are holding out for a better deal.

Bevington says that may not matter now that Imperial has put talks with Ottawa on the backburner.

Producers had hoped gas would be flowing through the proposed 1,200-kilometre pipeline by 2011.