LNG POTENTIAL IN THE NWT
Inuvik Case Study
~
NWT Chamber of Commerce AGM
April 9th, 2014
Outline
• Why LNG ?
• Inuvik’s Electricity Opportunity
• Inuvik LNG Supply Chain
• LNG Lessons Learned
• LNG – NWT Potential
Why LNG?
• Natural gas – lower cost, domestic supply
• Liquefied (LNG)
– -162°Celsius
– Safe to transport, store
– Lighter than water
– Evaporates as it warms
– No soil contamination Diesel
LNG
CNG
NaturalGas
Energy per Truckload
600 X More
60% Diesel Energy content
Inuvik’s Electricity Opportunity
• Local Gas well (Ikhil) supplied gas to NTPC (‘99 – 2012)
• Full scale diesel back-up – now in service
• Gas Power Plant – sitting idle
• Dempster Highway “all-season” road access
• All we needed was natural gas
Louis Cardinal Ferry –Mackenzie River Crossing
LNG Supply & Transport
LNG Source
Status Return Trip
Delta BC Online 7500 km
Grande Prairie
Online 5500 km
Fort Nelson Unknown 4225 km
Inuvik
Grande Prairie
Fort Nelson
Delta BC
• $25/GJ LNG target
• RFP for LNG tankers
• LNG equipment package
• Site prep / construction
Inuvik LNG Storage Facility
• 12 month project
• Feb 2014 operation
• $5.5M Investment
• 12 LNG Truck loads Delivered
• 2 truck fleet – 2 on order
• Volumes delivered define savings
• 20% lower fuel cost than diesel
LNG Lessons Learned
• Condensed timeline / design changes / winter construction
• Truck haul drives LNG Costs
• LNG storage way more costly than alternatives
• “Just in Time” Delivery model critical to business case
• Burn LNG when you can
• Rely on diesel back-up– 9 million litres of diesel
– 136,000 litres of LNG
LNG – NWT Potential
5 NWT Road Communities
• Bi-fuel conversion of existing diesel plants
• 60:40 Gas & Diesel mix
• Business Case for Inuvik heat load
• Barge Access Supply Chain – Sahtu (?)
• Centralized LNG supported by hydro(?)
• Transmission spurs to mines (?)
Inuvik
Fort McPherson
Fort Simpson
Fort Liard
Northern BC
Supply
Tuktoyaktuk
Energy Action Plan / Power System Plan