Thank you, Mr. Speaker. Later on today we’re going to be meeting with Environment and Natural Resources. I have some questions in the budget address with the $100,000 that he mentioned that’s an LNG, liquid natural gas, solution for Inuvik. I’ve been getting a lot of e-mails and questions in regard to what this money is going to be allocated towards and how it’s going to affect our gas situation in Inuvik. If the Minister can take a moment, would he be able to elaborate on what this money is for, how it’s going to be spent and how it’s going to be used for what he mentioned in the budget address? Thank you, Mr. Speaker.
Thank you, Mr. Moses. Minister of Environment and Natural Resources, Mr. Miltenberger.
Thank you, Mr. Speaker. As the government has worked with the community of Inuvik and other stakeholders through a response to the declining and depleted natural gas sources around Inuvik, one of the alternatives that came up as a viable option was liquid natural gas. NTPC has been engaged in a lot of work, talking to suppliers, doing the numbers, looking at transportation costs, looking at the cost per gigajoule landed in Inuvik versus other substances like the propane air mixture that’s currently provided, for example, or diesel, which is the most expensive. So there’s been work in that regard and we anticipate, hopefully in the next few weeks, to be able to report that hopefully we’ve reached a successful agreement with suppliers.
At this point that work is still underway and I’m not in a position to speak too much to the detail, but it looks to us, from the information that I’ve seen, that this is a potentially viable alternative. Thank you.
Thank you. I’m glad to hear that the Minister is working on this. In terms of his mention of synthetic gas, it is an issue because the way we ship it up in Inuvik is from Dawson, and as we all know, the Dempster Highway does close down sometimes. Our storage for the synthetic gas is only a five-day storage and we don’t want to get into a situation during these cold winter months where we’ll find ourselves in dire straits here.
He did mention about four weeks to come back with the report and the study. Can he give me an exact timeline, whether it be after we finish this House sitting, so I can let the residents of Inuvik know that at the end of this session we should have something that might be implemented, something that we can look at and move further? Can he give me a specific timeline, if possible? Thank you.
Thank you. The Power Corporation is working hard to conclude some of the arrangements. So I’m hopeful that in the life of this sitting that we’d be able to stand up and make a public announcement. What we are looking for, or the long-term target, of course, that we’re looking for, is to be – if all things fall in place as we’re planning – by this coming fall, in October, November, in Inuvik we’d be able to have an alternative source should we be able to confirm and sign all the necessary contracts to, in fact, embark on putting in liquid natural gas as an alternate source. So within the life of this sitting, I would hope to be able to stand up in this House and share that information with the folks.
Thank you. We’re talking about this advancement in the LNG possible solution. Last year the Minister and the department had allocated another $100,000 to other energy initiatives such as biomass, pellet stoves, wood stoves. Can the Minister confirm whether that dollar figure is still available for the community residents of Inuvik so that they can find another way to heat their homes and not rely on fuel? Thank you.
Thank you. The money that’s in there for rebates and grants is there, and we’ve added dollars and we’ve raised the cap, especially for businesses. So businesses that have expenses that are fairly significant, I think the cap has been raised to $50,000 from $15,000 and to better support folks. So that money is there not only for Inuvik, of course – but if they make use of that, that’s more power to them – but other Northerners as well. Thank you.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Moses.
Thank you. I appreciate the work that we’re doing for all residents and businesses that are on the natural gas situation. But the ones that are on diesel or on fuel, are there any initiatives in the plan going forward that would reduce the costs for those people on diesel fuel, as well, so that their cost of living goes down when other businesses on natural gas go down, as well, so that we’re targeting the whole community? Thank you.
Thank you. The intent with the Power Corporation, we’re focusing on generation of electricity. We’re a major customer in the community. We’ve been on diesel for a while now, ever since we got the word that the gas was being depleted, so that we would free up as much gas for the community as possible.
As we proceed on the liquid natural gas initiative, clearly there’s going to be opportunities for the community-at-large to take advantage of this as well. We have to look and balance the costs that are going to be there with liquid natural gas versus the projected costs for the synthetic gas, which is slightly less than diesel, but it’s still about $35 a gigajoule versus, I believe, $39. So it’s still very, very expensive when you think that natural gas is on the market down south for about $4 a gigajoule. Thank you.
Thank you, Mr. Miltenberger. The Member for Weledeh, Mr. Bromley.
