I am pleased to be in Inuvik today to announce completion of the first Liquefied Natural Gas Project to be built in Canada’s North. This achievement marks the first of a number of successful conversions from diesel to natural gas generation in the Northwest Territories.

The Government of the Northwest Territories is committed to creating a strong, prosperous North that provides opportunities for all communities and regions and promotes sustainable communities. Strategic investments in our energy system are an important part of how we will realize that vision. Displacing expensive, imported diesel with cheaper and cleaner fuels will help address living costs, support economic development and reduce impacts on our environment.

The project was identified as a key initiative in the NWT Energy Action Plan and the Vision for the NWT Power System Plan – released this past December. It is great to see northern innovation and initiative result in success here in Inuvik. I am confident that the experience we gain here will benefit other communities as we become more familiar with the technology and its inherent benefits.

This LNG facility will provide modest rate savings but significant environmental benefits to the Northwest Territories.

Initially we expect the facility will displace half of the annual diesel used for power generation in the Town of Inuvik and produce 25% fewer greenhouse gas emissions. Once fully operational, the facility will provide a 2% rate savings across the 21 communities of the thermal region and eliminate almost 6,000 tonnes of CO2 equivalent each year.

Although the supply chain is long with liquefied natural gas trucked from British Columbia, full diesel back-up is already in place and the power plants can switch seamlessly between diesel and natural gas production. This will ensure we can continue to provide safe and reliable electricity to Inuvik.

This project also continues our government’s commitment to support the Town and people of Inuvik as they seek alternatives to the declining natural gas supply. By switching public buildings off of natural gas and finding other fuels for electricity generation, we have helped to extend the supply of gas for local residents. LNG may not be the ultimate solution for Inuvik, but this facility will help give the community more time to consider its options.

As this project proves out successfully we will be able to consider similar projects in communities like Fort Simpson, Fort McPherson and Fort Liard, creating similar benefits for residents, businesses and the environment. When closer LNG supply sources emerge, we hope to see further savings as a result of reduced transportation distances and will be better positioned to leverage Northwest Territories gas supplies once they become viable. We also need to explore the business case for industrial scale applications that could power mines in the North Slave regions with a central gas plant and transmission line spurs.

This project was the result of a team effort that included the support of the Government of the Northwest Territories, Northwest Territories Power Corporation and its sister company NT Energy. We look forward to further success in harnessing the benefits of natural gas for the local environment, our communities and for our economy as a whole.

Thank you.