Debates of October 25, 2022 (day 125)
Thank you. Time is up. Are there any further questions, comments? Member for Yellowknife North.
Can someone just give me an update on the Fort Simpson LNG plant and whether that is on time and on budget for 20252026 completion?
Minister of Infrastructure.
Thank you, Madam Chair. So the planning for the Fort Simpson LNG project, so right now the project is on track but the flooding that happened in 2021 has caused some major delays. So after the flooding, we identified ongoing erosion area, the project scope was reevaluated and revised to be able to include relocating the existing diesel power plant. So the assessment work continues in this regard, including a climate lens cost estimation work and ultimately federal supports will be required to be able to move in project forward and help mitigate any potential rate impacts.
And if I can, Madam Chair, I'd just if, I can get Mr. Jenkins to just speak a little bit further on where we're at right now. I'm just trying to give you a highlevel overview on what we're doing. Thank you, Madam Chair.
Thank you. Mr. Jenkins.
Thank you, Madam Chair. So as the Minister mentioned after the spring 2021 flooding, really the project scope has been reevaluated and revised and recombined this with the relocation of the existing diesel power plant in the community, that project. So we continue to work with the Power Corporation in 20232024. We're going to continue to do that assessment work to combine those two projects together. And obviously we'll have to look at the costs and what the costs would be for combining those projects together, and then putting together a federal funding application for that work. Thank you, Madam Chair.
Thank you. MLA for Yellowknife North.
Yeah, thank you. I guess I heard that well, there's two projects here and now they're going to be put together, and I get there was some relocation due to flooding and we actually haven't secured federal funding I heard yet. So can I just get 20252026 seems pretty ambitious to build a whole new LNG plant that we don't have money for yet. So is that timeline realistic? Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. I'm going to ask Mr. Jenkins to speak a little bit more in detail about the timelines. Thank you.
Thank you. Mr. Jenkins.
Thank you, Madam Chair. So we have received some ICIP, Investing in Canada Infrastructure Program funding for the Fort Simpson Liquefied Natural Gas Project. That was announced back in 2019. We've not put forward a funding application for the plant relocation project. So we're in a position now where, due to the recent events, we would be combining those projects. We feel it's best to combine those projects. And we would need to revisit our costs and apply for federal funding. That costing work and the climate lens work, which is a requirement in a lot of that federal funding applications, that work's underway. The climate lens work is a requirement. It did confirm that the current power plant location is at risk of flooding. I don't think that's a surprise to anyone. But we do have to jump through several hoops and provide the rationale for Canada in that regard.
I think that if we move forward with the funding application the following year, obviously we'll have to revisit the timing schedule. It is dependent on the equipment we need to order, the infrastructure we need to order, and the amount of time it takes to get that equipment. But in terms of permitting and other aspects, this is infrastructure's located within the municipal boundaries. So it doesn't have some of the same requirements as projects that are outside. So we do think that the timing could work at this point in time. Thank you, Madam Chair.
Thank you. Member for Yellowknife North.
Thank you. Is it possible to make an estimated cost for the Whati transmission line public yet? Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. I will get Mr. Jenkins to respond. Thanks.
Mr. Jenkins.
Thank you, Madam Chair. So at this point in time we're working with the Tlicho government to do technical refresh study, and a part of that is determining the most optimal route. So accordingly the depending on the route, the length, the terrain, a number of different factors will come into play when we develop cost estimates. So unfortunately we would not have a cost estimate at this point in time. Once we do the updated routing, we'll have to go back and develop that updated cost estimate, which would support the federal funding application. Thank you, Madam Chair.
Thank you. Member for Yellowknife North.
Yeah, thank you. I'm just trying to understand what it means when a project in the capital plan has, you know, ICIP or one of the federal funding pots in it. Does that actually signify that there's been agreement to get that money? I mean, the Whati transmission line, I hear that once we have a route we will then apply to get federal money. But so is it just we put a bracket that that's the hope of the pot we will get out of, or is there actually a bit more of a commitment or some preliminary agreement that this would actually get funding? If I could understand what that means, thank you.
Minister of Infrastructure.
Thank you, Madam Chair. I'm going to ask Mr. Jenkins.
Mr. Jenkins.
Thank you, Madam Chair. So we do have a tenyear agreement with Canada, the Investing in Canada Infrastructure Program. There are a number of projects listed within that agreement in terms of noshow projects. But we still have to go back for each individual project, provide the information to Canada, including estimated costs and seek approval for each project. So the Whati transmission line would be a project that is listed no showing but it's not one for which we've formally applied and received approval from Canada, and we do not have a funding agreement for that project as of yet. Thank you, Madam Chair.
Thank you. Member for Yellowknife North.
Yeah, thank you, Madam Chair. I'm going to repeat myself a couple times but, you know, what kind of happens when we do capital estimates is we have a confidential briefing note that gives you a bit of an update, and then we ask question like such as can someone give us an update of what's going on here. And I get there's a debate about the total amount and procurement; I have made that clear. But could the Department of Infrastructure perhaps look at making some sort of public kind of updating that goes with each capital plan. I just find it frustrating that I have to ask what's going on with Fort Simpson LNG when I didn't hear anything there that had to be confidential. It seems fine to publish where we are at with each project as we ask for more money, even if we're not going to say how much money were asking for. But at least some facts to be included with the capital plan, would that be something the department would be willing to look into? Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, I hear the Member's concern about, you know, having information here and there. And it looks like we perhaps need to go back to the department and have more of a streamlined communication on a lot of our projects. And I really think that once we get our dashboard online, it will have a one area to be able to go and look at different projects and where they're at and I think that would be helpful. We're not there yet. We understand the frustration from the Member, and trying to work to get this done. So give us be patient with us, we'll get there. Thank you, Madam Chair.
Thank you. Member for Yellowknife North.
Yeah, thank you. One last one which I will ask for an update of, because this is not public information. It says here that the Mackenzie Valley environmental assessment and planning for the highway will be completed in 20252026. We all know that that's been in environmental planning for far longer than any of us wanted. But I'm just wondering if that's realistic given what I've seen regarding the change in timelines for a number of sections of the road and the bridges that are currently under environmental assessment. Do we actually think we're going to get to the EA by 20252026; do we have any sort of update on that? Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, so that's our aim. We are looking at the Mackenzie Valley environmental assessment planning and to be able to look at the some of the work that's going forward, detailed environmental assessment planning work, the environmental baseline studies, traditional knowledge. There's a number of things. And I can go on. I probably should just let the Member know that work is progressing. We did receive some funding for some components on from the National Trade Corridors Fund. We have an MOU signed with the Sahtu Secretariat. We are discussing a MOU with the PKFN. We are anticipating our developers report to be submitted to the environmental review board by the end of this fiscal year and to get some of this work started. Some of the work that's planned for this year, however, is the submission of the developers assessment report, also to advance the project through environmental assessment. Thanks, Madam Chair.
Thank you. Are there any further questions, comments under energy and strategic initiatives? Member for Nunakput.
No. Just in regards to the to the Tuk M18 natural gas well and the support that I guess we're having a little bit of issues with the federal government pushing it into review when it was it's a 71A land from Tuk, people of Tuk. And it's our land claim and it's our basically our right. So where does your government sit on this in regards and what are they doing to assist the Inuvialuit Development Corporation or Inuvialuit Regional Corporation and the community of Tuk in regards to this project and the holdup that we're having being pushed towards screening. Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, so we are the GNWT is supporting the Inuvialuit Regional Corporation, and the partners, to be able to explore and develop the M18 natural gas well near Tuk and is a potential customer. And I think that's really important and key to know that we want this project going as much as we can, and I believe we continue to work with the Inuvialuit to support them in the plant. Thanks, Madam Chair.
Thank you. Member for Nunakput.
Thank you, Madam Chair. No, just in regards to Madam Minister that the GNWT do I guess did we talk to your federal counterparts in regards to seeing where they could go with this holdup in regards to put into screening? When it like, I'll argue again, I mean, it is a land claim and it's 71A lands. The people of Tuk own that land. And that land claim was signed in 1984. So why are they pushing it to screening and why is it going the way it's going when it shouldn't be with our federal government. Thank you, Madam Chair.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, I hear the Member's concerns. You know, you look at the M18 well, this is I just want to note, like, the Department of Infrastructure's interest and the Northwest Territories Power Corporation interest is more of the customer side and looking at some of the conversions to be able to save us some work with the proponent on that. You know, right now, we don't really have much of a say to this. Maybe some other departments within GNWT and I'm seeing Minister of ITI nodding her head right now. So there are other departments involved. Right now we see it as part of Infrastructure more. We want to be a customer. We want to be able to have some conversion so that we can use the well to reduce some of our GHG. But all in all, Madam Chair, I really can't speak for the federal government in terms of them and their relationship with the Indigenous group. Thank you.
Thank you. Member for Nunakput.
No, thank you, Madam Chair. Just in regards to I find a comment on that just, I guess we got to find a way in regards to seeing what the federal government's doing in regards to settled land claims holding up projects, putting it into screening. You know, it's if the Minister would I guess work with her colleagues and our Premier to take a look at that, to make sure that this this shouldn't be happening. And so if she could just commit to that. Thank you, Madam Chair.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, I'm looking over at Cabinet and my colleagues over there, and I'm looking at Ministers shaking their head, and perhaps even Premier. This is something that, you know, we did talk about earlier about going to the feds with some of our priorities and just having discussions on where we're at with projects that we want to see going forward. So I mean, we will have that discussion within Cabinet. Thank you, Madam Chair.
Thank you. Member for Hay River South.
Thank you, Madam Chair. I just want to get an idea of, I guess, where we are with the Fort Providence transmission line, you know, where we are in the process. We got a target completion, I think, by 20242025. Can the Minister just provide me a quick update on that. Thank you.
Thank you. Minister of Infrastructure.
Thank you, Madam Chair. Madam Chair, so looking at the transmission line, so we are conducting consultation engagement activities. We're doing the environmental studies, preparing a land use permit application. So I just want to note that to date we've had about 12 meetings held with Indigenous governments. 13 meetings have been held with stakeholders and some of the regulatory agencies. So the planned work that we have in this budget right now is to continue engagement consultation, submit our land use permit to be able to, yes, have those further discussions on pursuing this Fort Providence transmission line. Thank you.
Member for Hay River South.
Thank you, Madam Chair. And with respect to I guess costing this project, do we have a preliminary cost, and are we and if we do, are we updating that as, yeah, I guess prices and availability of material becoming a problem? Thank you.