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INUVIK
Although gas rates haven't doubled again, they are estimated to be higher than projected at the last public meetings on the issue late in the fall.

Customers will start to see the new rate of $35.44 per gigajoule fully reflected in the next billing cycle. - T. Shawn Giilck/NNSL photo

In a media release, Inuvik Gas Ltd. confirms the synthetic natural gas (SNG) rate is $35.44 per gigajoule. The rate had been estimated as being in the $34-per-gigajoule range at the meetings.

The rate, which Inuvik Gas said was set following approval by the Public Utilities Board (PUB), has also been reviewed and endorsed by the Town of Inuvik and is effective Feb. 10.

That seemed to be news to the town, as SAO Grant Hood hadn't been informed of the announcement Feb. 5 when he was contacted by the Inuvik Drum.

"I think we still have the support of our customers," said Inuvik Gas general manager Kevin McKay. "I think people might be a bit relieved, but there's no doubt it's a jump in price."

He said at one point last year it looked like the price might have come in at $37 a gigajoule, so the new price point is somewhat better than it could have been."

"We're burning a lot of propane right now," he added. "There are two trucks minimum coming into town from Dawson every day. It's the heart of the heating system."

The first bills to customers in town have gone out, incorporating the new rates for the first few days of February. More will be mailed out deeper into the month as the accounts roll over, McKay said.

So far, he hadn't heard of much public reaction to the news of the price.

The synthetic natural gas system was put in place following problems with the town's Ikhil natural gas field. The life expectancy of the field and well was drastically shortened after being infiltrated by water in recent years. That has left the town scrambling for short-term solutions as it searches for a long-term fix.

The Inuvik area has considerable natural gas resources, Hood said in an interview last week. However, estimates to drill a new well and pipeline to Inuvik are in $60- to $70-million range, making it economically unfeasible at the moment.

Customers will start to see the new rate fully reflected in the next billing cycle.

According to Inuvik Gas, the largest portion of the rate – $27.17/gigajoule – is eaten up by the price of synthetic natural gas and the cost to deliver it to Inuvik.

The town keeps an eight-day supply of gas on hand.

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