Inuvik Gas and Ikhil Joint Venture Work With NTPC to Reduce Natural Gas Demand

INUVIK, NORTHWEST TERRITORIES--(Marketwire - Jan. 11, 2012) - Inuvik Gas Ltd. and the Ikhil Joint Venture together with the Northwest Territories Power Corporation (NTPC), are working to reduce demand on current natural gas reserves in the Ikhil pool. Beginning this month, The NTPC, which uses natural gas from Ikhil to power its electricity grid, will switch over to existing diesel generators. The move could effectively double the period over which the remaining natural gas supply can meet the demands of Inuvik Gas customers.

"We thank the NTPC for their significant reduction in the current demand on the Ikhil reserves," said Kevin MacKay, General Manager, Inuvik Gas Ltd. "As we continue to work on a plan to secure a long-term natural gas supply for the town, we are encouraging conservation."

Since 1999, two wells located 50 km northwest of Inuvik at Ikhil, have supplied the Northwest Territories Power Commission (NTPC) and Inuvik Gas Ltd. with natural gas. In November 2010, one of the two wells at Ikhil ceased to produce due to water entering the well bore. A preliminary reserve analysis indicates that remaining reserves are significantly less than originally anticipated

"I am pleased that for the safety and security of the residents of Inuvik, the service providers in the community could work together to extend the life of the Ikhil reserve," said Inuvik Mayor, Denny Rodgers. "Anything that can be done to give residents longer access to natural gas for heating will have a positive impact on the community."

In October 2011, Inuvik Gas commissioned a propane air system to provide a short-term, back-up energy supply to the Town of Inuvik in the event of a natural gas outage. When activated, the propane air system uses the existing natural gas system to deliver continued service to customers.

Inuvik Gas and the Ikhil Joint Venture continue to work closely with the Town of Inuvik and the Government of Northwest Territories to assess options for a long-term natural gas solution for the community. One option includes the possible development of the South Parsons Lake reserves - a natural gas field 25 km from Inuvik.

Inuvik Gas Ltd. distributes natural gas to approximately 900 commercial and residential customers in the town of Inuvik in the Northwest Territories. Inuvik Gas Ltd. and the Ikhil Joint Venture are owned by the Inuvialuit Petroleum Corporation, AltaGas Ltd. and ATCO Midstream NWT Ltd.