Saturday, 01 January 2011 06:48
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| Norman Wells, N.W.T., is one of eight communities along the proposed 1,200-kilometre Mackenzie Valley route that might be able to access natural gas from the pipeline. (CBC) |
The town of Norman Wells, N.W.T., is one of eight communities that might be eligible to tap into the proposed 1,200-kilometre gas pipeline, which was approved by the National Energy Board this month.
Calgary-based Imperial Oil is leading a consortium of companies behind the $16.2-billion project. As part of the conditions the NEB attached to its approval, the consortium has until the end of 2013 to decide whether it actually wants to build the pipeline.
The board has also given the companies until the end of 2011 to decide if building "lateral" lines into the eight communities near the pipeline route would make economic sense.
Along with Norman Wells, other communities that could get lateral gas lines are Inuvik, Fort Good Hope, Tulita, Déline, Wrigley, Fort Simpson and Jean Marie River.
"Not only is it extremely important, it's absolutely necessary," Norman Wells Mayor Dudley Johnson told CBC News.
Norman Wells already runs on natural gas, but Johnson said the town's current gas source will run out in four years.
Costly switch can be avoided: mayor
Johnson said switching every household in the town of about 800 from natural gas to another fuel source, such as diesel, could financially cripple residents and businesses.
"Everyone [would have] to change their furnaces, change their dryers, change their stoves. I mean, the cost of electricity for households is going to go up because you have all electric stoves," he said.
"At my house, for me to change over is going to cost me $15,000."
Connecting to the Mackenzie Valley pipeline, guaranteeing a supply of natural gas, would prevent that costly scenario, Johnson said.
"If we could be sure that we are hooking into the Mackenzie gas pipeline, it will solve a vast number of problems for the town and for the residents of Norman Wells," he said.
Imperial Oil spokesman Pius Rolheiser said pipeline proponents have always believed that northern communities should have access to the pipeline, but he said it's too early to say if extension lines will be built to the eight communities.
"I think we need to do the analysis, we need to consult with potential shippers, with the government of the Northwest Territories, and with communities before we can adequately answer that," Rolheiser said.