INUVIK
"We have a gas company without gas and a power company without a fuel source."
Those words from Coun. Terry Halifax highlighted a vigorous discussion of energy issues in Inuvik during an April 10 council meeting.
It was obvious council members weren't remotely happy with the energy-starved situation the town finds itself in with the contamination of the Ikhil natural gas field. Heating costs have nearly doubled for residents this past winter after the introduction of synthetic natural gas as an alternative to the Ikhil field, where water seepage has slashed the life expectancy of the reservoir.
Local churches have been among the hardest hit. Our Lady of Victory Church is looking at a bill of $2,800 a month, said spokesperson Miki O'Kane.
Since the field was the only game in town for Inuvik, it's left everyone scrambling to find ways to cope. Ironically, that's happening while the region sits on some of the largest gas reservoirs in North America, which experts say can't be tapped because it's not economically viable.
The NWT Power Corporation in Inuvik has been busy looking into using liquid natural gas as an alternative to either natural gas or synthetic natural gas, councillors said. It's researching the practicality of some kind of a storage facility, with a closed-door meeting to update the issue to be held in the near future.
However, that prospect left several councillors unimpressed.
"Liquid natural gas is very volatile," said Coun. Derek Lindsay. "It can't be stored downtown."
With Inuvik Gas's franchise agreement running out in August, Halifax said it's time to send out a request for a proposal (RFP) to give the town options on its energy future.
"Maybe we need a partner with deeper pockets," Halifax suggested. "We should be shopping this around."
His comments were part of a floodgate of frustration that started to boil over.
"It's ludicrous to enter into a franchise agreement with a company that can't supply natural gas," said Coun. Clarence Wood. "We need to send this out as a RFP."
"Is there a plan to find something other than SNG (synthetic natural gas)?" Coun. Kurt Wainman asked. "Is there a future for natural gas?"
The situation is complicated further because Inuvik Gas owns the infrastructure that natural gas and SNG flows through in town. Anyone willing to take over the franchise agreement would have to deal with that as well, said senior administrative officer Grant Hood. It's bound to be a pricy discussion, as the new company would either have to buy Inuvik Gas out or perhaps partner with them.
"We don't have a lot of options," said deputy mayor Jim McDonald. "No one is looking to come in and drill a well.
"The town is waiting to see if a liquid natural gas supply is feasible. I don't see LNG as a viable option," he said.
"We're in a holding pattern right now," added Hood. "No one wants to take a risk or invest in it (a new natural gas supply). We don't have the information we need."
