Whitehorse Daily Star

Image title

Photo by Whitehorse Star

Michael Brandt and David Thompson

LNG’s potential hears ringing endorsements

Seems LNG is on everybody’s mind these days.

By Chuck Tobin on October 9, 2014

Seems LNG is on everybody’s mind these days.

The subject of liquefied natural gas and its potential use and distribution through the Yukon was noted on the opening morning of this week’s Opportunities North Conference titled Pushing Boundaries in Whitehorse.

Mining executives explained how they are actively exploring the use of natural gas as a cleaner and less expensive alternative to diesel fuel for powering generators at their remote mine sites, should their projects proceed.

Yukon Energy vice-president Michael Brandt said the publicly owned utility sees the use of natural gas to displace diesel as a made-in-Yukon solution to create an energy profile that fits the needs of the North.

And the Crown corporation is doing its part by helping to establish the supply chain for LNG with its new $40 million back-up generating plant, Brandt told the audience.

Pushing boundaries, said Brandt, is the same as facing challenges.

“How do we move these boundaries in the Yukon to create the energy profile that we want?” he asked.

Brandt said once the business case for LNG is firmly in place, things will just get better.

The Crown corporation is in discussions with B.C. and Alaska to build the supply chain, he told the audience.

“We are still working on a bulk haul permit for larger trucks to bring LNG north.”

Andrew Hall, Yukon Energy’s new president, said optimizing the provision of energy requires searching for synergies. The potential partnerships around LNG are key these days, he suggested.

Liquefied natural gas, Hall pointed out, is already moving north through the Yukon to the Northwest Territories.

Hall said the business case for LNG is indeed compelling.

Conference moderator Darielle Talarico told the audience the question is how do Yukoners go about taking responsibility for their oil and gas resources, and how do they go about taking responsibility for their whole energy mix?

The conversation, however, is currently dominated by the anti-hydraulic fracturing movement, and not how to take charge of the territory’s energy future, she said.

“I know there are a lot of people who want to have this conversation but find it difficult to have it in the Yukon.”

The audience also heard from three top executives of advanced mining projects in the Yukon, all of whom are looking to natural gas for power generation.

President Paul West-Sells of the Casino Mining Corp. said the company’s Casino project – which would be the largest open pit in the Yukon’s history, and would dwarf the former Faro mine – is looking to LNG.

Not only is it examining natural gas for power generation, but it’s also fixed on the idea of using it to fuel all the trucks and heavy equipment required for the project, he told the audience.

Vice-president Maurice Albert of Selwyn Chihong Mining said his company is also looking to import LNG for its Howard’s Pass project on the Yukon-N.W.T. border, north of Cantung.

Howard’s Pass, he said, will require 100 megawatts of generation. (The total capacity at the Whitehorse Rapids Dam is 80 MW – 40 hydro, 40 diesel generation.)

Northern Cross CEO David Thompson told the audience the company’s oil and gas leases in northern Yukon have the potential to supply the energy market in the Yukon with both oil and natural gas.

Thought is even being given to combining the two products to make a hybrid fuel, he said.

Thompson said it is a rare opportunity to have the ability to develop a local oil and gas industry, an opportunity that brings great benefits.

The Yukon currently spends $200 million a year importing fuel, he pointed out.

He said over the last three years, Northern Cross has invested $100 million on its exploration program on Eagle Plain, including the first-ever 3D seismic program in the territory.

The exploration program, Thompson said, has put Northern Cross in a position to refine its search for the conventional oil and gas resources in northern Yukon.

“We know that all these wells are not going to be successful,” he said. “It’s a risky business.

“But we think we can zero in on the high-potential areas with the work we have done.... I think the local resources here can be part of the supply chain.”

See related conference coverage and more in Friday’s edition.

Comments (10)

Up 1 Down 1

Heiko Nyland on Oct 15, 2014 at 6:39 pm

It's easy to dis people that think beyond fattening their own bank account. Dollar signs blind people from seeing the beauty around them as it is. Or the value of our Yukon as a natural place. So sorry for their blindness, lack of forsight, and general ignorance. Obviously not real Yukoners.

Up 6 Down 6

YTer on Oct 14, 2014 at 2:52 pm

You got her right Yukon Future. We need to make this place pay! Its been sitting here stagnating for too long. The more outside companies that can show us how, the better. I just hope we will see the day when Whitehorse can be another Fort McMurray. All these greenies who live here just want quality of life, bah! There is money to be made, let's get the boom on!

Up 10 Down 5

Support Natural Gas as Development tool on Oct 14, 2014 at 2:39 pm

It is great this paper permits the public comments to be accessed by the general public. It gives a reading on what the real majority of the public think and feel on issues such as fracking LNG etc. It is very clear like AB, Sask, BC, NWT and Alaska natural gas will be part of our energy supply and the Yukon people want gas development as part of the future like all of the rest of western and northern Canada.
The ratings are very clear in this paper and people want fracking. It permits the person who has an interest in issues to express their interest and not be subjecting themselves to the activities at these hearing and public meetings. I wanted to express my view at the Whitehorse hearing but forget it there was no objective realistic point of view.

Up 11 Down 1

Mark Smart on Oct 14, 2014 at 12:01 pm

I am anti fracking but have no issue with oil and gas development which can be developed with a small footprint and environmental safeguards.
Think of Inuvik, a truck load of gas per day. We can plan and do much better than that. We have gas here than can be used. Let's get on with it and combine LNG use with renewable energy resources.

Up 20 Down 8

Yukon Future on Oct 14, 2014 at 10:10 am

Great work of planning, developing and building the Yukon Future. The Anti fracking group just don't care about the Yukon economic future but like to make noise but enjoy the benefits of a strong economy. Don't even listen to their waste of time and waste of public dollars like the NDP like to do.

Up 23 Down 6

north_of_60 on Oct 12, 2014 at 8:45 pm

"Talarico told the audience the question is how do Yukoners go about taking responsibility for their oil and gas resources, and how do they go about taking responsibility for their whole energy mix?
The conversation, however, is currently dominated by the anti-hydraulic fracturing movement, and not how to take charge of the territory’s energy future, she said."

This sums up the situation quite well. The reason the anti-everything [including fracking] minority gets attention is largely because of the media that usually only presents the anti-fracking side.
Perhaps this article is a good start towards more balanced reporting on the Yukon's energy future.

Up 7 Down 5

Wundering on Oct 12, 2014 at 8:00 pm

Of course the resources of the Yukon will be developed, but not until the infrastructure is in place to exploit them. Mostly it will be pipelines heading south. Dawson Creek has already given the OK to AltaGas Ltd. to build a LNG plant within Dawson Creek city limits to supply northern communities.

http://www.alaskahighwaynews.ca/news/local/lng-plant-to-be-built-in-dawson-creek-city-limits-1.1324738

Up 3 Down 14

Yukon 2nd Nation on Oct 12, 2014 at 1:27 pm

If it isn't powered by fireweed flactuants and moose f@rts, I don't want anything to do with it.

Up 10 Down 28

Sylvia Burkhard on Oct 10, 2014 at 3:24 pm

Seriously, are we building an LNG plant here, probably not so any gas will flow from here to a processing plant and we will buy it back from the foreign company that owns it, and the price is only going to go up, which it will do when the states shut down their shale production due to lack of water and they will be back to taking the gas south. This attitude that the Chamber of Commerce, YTG and mining companies know what's best for us peons is infuriating...we know lots of folks working in the patches with the real story and we know who already owns our gas and it ain't us, heck we don't even own the power that is produced in the Yukon.

Up 29 Down 6

Put er there partner on Oct 9, 2014 at 7:41 pm

Why not tap into the Kokantenele (sic) gas fields in the SE Yukon also for supplying LNG. I think that the capacity of these fields is enormous.
I think that the CEO of Northern Crosses hybrid fuel would not be new as refineries can produce natural gas from oil, vice versa and everything in between.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.