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Power Corp obtains fuel supply Liquid natural gas coming to Inuvik
Shawn Giilck
Northern News Services
Published Thursday, June 6, 2013
INUVIK
The GNWT has made a small but significant step toward solving Inuvik's energy woes.
Michael Miltenberger, the minister of finance and the minister responsible for the Northwest Territories Power Corporation, told Inuvik Drum May 31 the GNWT has secured a liquid natural gas supply for the Inuvik branch of the power corporation.
That's an early step in addressing the town's pressing energy needs, which have ballooned under the current system of trucking synthetic natural gas (SNG) up the Dempster Highway to the Inuvik Gas distribution system.
Liquid Natural Gas (LNG) is a lower-cost alternative to SNG for the town, Miltenberger said. The supply for the power corporation is likely just the start of a larger option for the community.
The product is a compressed form of natural gas that Miltenberger said "burns better, with more BTUs and it was the most logical of the alternatives available to us."
The price difference is significant, with LNG approximately $10 cheaper for a gigajoule than SNG. It's priced at $25 a gigajoule.
Inuvik Mayor Floyd Roland was fairly pleased with the announcement, although both he and Boot Lake MLA Alfred Moses questioned the sense of trucking fuel into Inuvik as a long-term solution.
At the legislative assembly last week, Moses said relying on trucking fuel into Inuvik was not a good long-term plan, since the town is subject to frequent highway closures, particularly on a seasonal basis.
"We continue to meet with representatives of the Power Corp. to discuss how they plan to implement their LNG plan in our community," Roland stated via e-mail. "We are very interested in the work that has been done to date. As we (town council) look to begin work on a future franchise agreement, we will need to look at the final numbers after they have installed their LNG equipment and operation has started."
"I believe the work of the Power Corp. provides another option of fuel supply, but what we need to focus on is where the supply chain comes from," he added.
"Why are we continuing to look at bringing product up from southern markets? I believe we need to look at developing the resources we have right in our own lands."
Newton Grey, the president of the Inuvik Chamber of Commerce, was also reasonably pleased with the news.
"I've been aware of the work toward LNG for some time now and it's something the chamber supports whole-heartedly," he said. "It will bring prices down for electricity, and I'm anticipating the formula will be successful enough that communities in the NWT will copy and benefit from it."
"I'm also hopeful the town will find a way to buy some of that energy, since it will bring the price down and therefore be a significant drop and it will go well for homes and businesses in Inuvik. Both are suffering right now."
In the May 31 interview, Miltenberger called the LNG supply to the power corporation a "beachhead" for addressing the town's energy woes.
"I assume that over time the town will migrate to this LNG supply," he said. "The big advantage is that it's at least $10 a gigajoule cheaper. There may be an opportunity sometime in the future for Inuvik, and it's a more affordable solution. It may be a longer-term solution."
For the moment the LNG will be trucked in from southern British Columbia, but he expected that would change to closer locations in the near future.
He didn't share Moses's concern about the regular highway closures. Miltenberger said the power corporation is "fully redundant" and able to run off diesel sources if necessary.
He also noted the GNWT has earmarked money to improve the ferry services south of Inuvik to ensure a minimal disruption of the highway in coming years.
"The ferry season will be extended considerably and will provide benefits to the community with less disruption in those weeks when there is no connection at all."
"This is the most cost-effective, sustainable solution that we think makes sense," Miltenberger said.
If the town begins to work with the power corporation supply of LNG, he said this should create "the economy of scale" that will make it practical for residents to "migrate" to using LNG.
"The big issue with LNG is the storage, and we're sorting that out as well," Miltenberger said.
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