LNG POTENTIAL IN THE NWT

Inuvik Case Study

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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