Home page

Text size

E-mail this page

INUVIK
The Northwest Territories Power Corporation will be switching from natural gas to diesel fuel in Inuvik early this year, according to the corporation's president and CEO.

Michael Miltenberger, minister responsible for the NWT Power Corporation, said GNWT will help cover the cost difference to homeowners. - NNSL file photos

"The proposed solution will have (the power corp.) generating 90 per cent of the town's power with diesel, and gas will only be used to allow maintenance of the diesel equipment and as a backup supply to the town," said Emanuel DaRosa.

The GNWT has announced it will help cover the cost difference to homeowners, although the total amount they are contributing has not yet been released.

"Given the NWT-wide electricity rate pressure we will be facing in the near future, we felt we needed to insulate rate payers from additional unforeseen increases,” said Michael Miltenberger, minister responsible for the NWT Power Corporation, in a news release on Dec. 20.

"This move will stabilize the situation and allows us more time to find a long-term solution for the residents of Inuvik."

Currently, Ikhil Joint Venture is contracted to supply Inuvik Gas and the power corp. with natural gas from the nearby Ikhil well to produce heat and electricity.

In the fall, the company announced its gas field could be depleted in less than two years, despite having nine years remaining in its 20-year contract.

"(The power corp.) and the GNWT came together quickly to address the issue," said Brendan Bell, Chairman of the power corp., in a news release on Dec. 20.

"Together, I think we’ve been able to develop a plan that meets the needs of the people of Inuvik while keeping the cost of electricity stable."

The move to diesel will double the life of the gas field, according to DaRosa, and give stakeholders more time to come up with a long-term plan.

One possible solution is to tap into the Parson's Lake reserve, which is owned by ConocoPhillips and located approximately 75 km northeast of Inuvik.

At the beginning of November, Inuvik Gas submitted a proposal to the company that would see Ikhil Joint Venture drill a new well and build a new pipeline from the lake.

ConocoPhillips told Inuvik Gas at the time that it would be willing to consider allowing access to the reserve, but wouldn't contribute a capital investment to the project.

We welcome your opinions. Click here to e-mail a letter to the editor.