NTPC pursues liquid natural gas study in Fort Simpson
Report to look at economics of plant that would see 85 per cent of diesel power switched to liquid natural gas
April Hudson
Northern News Services
Tuesday, November 15, 2016
LIIDLII KUE/FORT SIMPSON
With a design report recently released for a possible liquid natural gas plant in Fort Simpson, the Northwest Territories Power Corporation is now taking a look at the economic situation of that potential plant.
The Northwest Territories Power Corporation is considering a liquid natural gas plant in Fort Simpson. - April Hudson/NNSL photo
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The report, which will be a business case analysis, has a targeted completion date of March 2017.
Myra Berrub, manager of energy services for the power corporation, said after the power corporation's success with liquid natural gas in Inuvik, they decided to explore options with other on-road diesel communities.
"Fort Simpson is one of the obvious communities. It's the next largest diesel community after Inuvik, it's on the road and it's actually a lot closer to the (liquid natural gas) market," Berrub said.
As the business case analysis gets underway, the power corporation is keeping an eye on the market and will likely wait until it is economically viable to build a plant in Fort Simpson, she added. Currently, the low prices of diesel fuel means it is not economical to switch Fort Simpson over from diesel power to liquid natural gas. Berrub estimates that price currently sits around 77 cents per litre.
"When we first started down this path . (the diesel price) was higher than it is now. And so it did make a lot more sense," Berrub said, but added the power corporation is not putting the project on hold despite low prices.
"Obviously, we expect fuel prices to rise. We are still pursuing it."
The proposed liquid natural gas plant would include the plant itself, storage and a vaporization facility.
The design brief report, which was completed in October by Associated Engineering, notes one of the items included in the first phase of the facility's construction would be two 68-cubic-metre storage tanks. Four more tanks may be required in the future.
According to the report, two adjacent sites have been identified for the facility off-island, about two kilometres southeast of the village centre, located in the village's industrial area.
The site, which drains toward the Liard River, has already been cleared of debris and is ready for grading, the report states; grading should ensure any spillage of liquid natural gas will remain on the property.
Berrub said the power corporation is looking to replace 85 per cent of the diesel power to Fort Simpson with liquid natural gas.
It would also provide 1,800 tonnes of greenhouse gas emission reductions each year - a 27 per cent reduction from power generation in the village.
The business case analysis is being led by the territorial government's Department of Public Works and Services.
