NORTHWEST TERRITORIES
Fort Providence consultant Richard Lafferty thinks the time is ripe for the GNWT to re-consider a natural gas pipeline proposal he developed twelve years ago and has been pitching ever since.

An example of high-pressure, small-diameter flexible pipe being installed in the field. A consultant and two pipeline engineers believe this could be a solution to the North's high energy costs. - photo courtesy of Richard Lafferty

"The plan is to bring natural gas from Steen River in Northern Alberta. There's a gas plant at Bistro Lake that takes natural gas right out of the Cameron Hills," Lafferty said.

The pipeline would predominately follow existing right-of-ways along highways and winter roads, and could supply diesel communities and industrial projects with inexpensive natural gas.

But don't think pipeline in the sense of the large diameter steel product associated with mega oil and gas projects.

Instead, the six-inch diameter flexible pipe proposed by Lafferty is described as a quickly installed, extremely durable natural gas transportation solution that goes in without the massive capital outlay associated with large diameter steel pipe.

"It's a composite pipe. It's an extruded polymer interior, with a wound steel in the inner core and an extruded exterior. This pipe can be just ploughed in like a fibre optic cable," Lafferty said.

"Then you can tie it in to all the small communities and developments along the highways. One six-inch line would provide enough natural gas to power all of the communities and all of the mines along the corridors, very easily."

Existing diesel generators in communities or on mine-sites could be easily converted to run on natural gas, Lafferty said. All that would be required is the installation of a simple fuel kit similar to what is commonly installed in automotive engines to convert them to propane fuel.

Lafferty came up with this plan based on his experience as a an aboriginal liaison and facilitator to the pipeline industry for the past fifteen years, but he has two prominent pipeline engineers backing the proposal.

Pat Agnew and Ian Morris both have deep CVs in the pipeline industry with more than 55 years engineering experience between them.

"This is the perfect product to bring energy to the North," Agnew told News/North.

"It's been used all over the world and it's been used in incredibly more difficult environments than Northern Canada."

Citing applications in diverse conditions, from underwater in the North Sea to battlefields in Iraq, Agnew said the flexible pipe is a good fit for the North.

And he would know. Agnew's CV lists being a project engineer on the Norman Wells to Zama Enbridge pipeline.

"My thesis for the NWT (professional engineer designation) was on permafrost," Agnew said. "I was very much a student of permafrost."

Agnew said that the complications and expense that goes with installing a permanent steel pipeline in frigid Northern environments are not involved when it comes to installing this flexible pipe.

It goes in, he said, with a minimal environmental footprint.

For example, a typical large diameter steel natural gas pipeline might require up to a 50 metre right of way for installation and maintenance. This product would only need up to ten metres.

Lafferty said a fibre optic cable can be built right into the extruded outer casing. That could monitor the pipe for any drops in temperature that would indicate a leak, making pipeline integrity monitoring relatively straightforward.

He estimates that for less than $300 million, the pipeline could be installed from the border and serve Fort Smith, Fort Resolution, Hay River, Fort Providence, Behchoko and reach the diamond mines northeast of Yellowknife.

Once installed, the math is simple Lafferty said.

"On average, it's $4.50 per gigajoule (of energy) with natural gas," Lafferty said. "It takes 28.5 litres of diesel to make one gigajoule of energy. At an average cost of $1.50 per litre, natural gas is one tenth the cost of diesel fuel."

Dave Nightingale, director of energy policy and planning with the Department of Industry, Tourism and Investment, said he's familiar with the proposal.

"We've had a couple of briefings with Richard over the years," Nightingale said.

"One thing we keep coming back to is access to gas and access to capital."

"Ultimately, he would like an agreement that if he were shipping gas, and if it were economical, that we would buy it."

Nightingale said the territory would seriously consider any proposal that might reduce energy costs in the communities, but that would require a more complete plan than anything he's seen so far.

Lafferty will be attending this week's energy workshop in Yellowknife. If Sahtu MLA Norman Yakelaya's response to Lafferty's proposal is any indication, he may find the support there he needs to add momentum to his project.

"We have a huge amount of natural gas supplies that could lower our cost of living and improve the economics of the NWT," Yakelaya said.

"I'd like to look at it more closely and see if it is possible."