Thank you, Mr. Speaker. Welcome back and I wish to extend this welcome back to the other Members as well. Mr. Speaker, by way of this Member's statement, I wish to call attention to a very significant achievement accomplished by the Inuvialuit Petroleum Corporation. Namely, the successful drilling and testing of the Ikhil gas well located 30 miles north of the town of Inuvik during the winter months of 1997.
As some Members may already know this successful drilling and testing program was a significant part of the overall plan the IPC has undertaken to supply natural gas to the town of Inuvik. The successful completion of the Ikhil K-35 well has assured a 15-year reliable supply of natural gas with potential for larger reserves in the immediate area.
IPC's overall expenditures on this portion of the Inuvik gas project was in the neighbourhood of $1.6 million, a major portion of which was spent in the Beaufort Delta area to the benefit of local businesses and residents.
Mr. Speaker, the overall completion of the Inuvik gas project calls for construction of production facilities, construction of a 30 mile gas pipeline from the well site to the town gates and a distribution system within the town of Inuvik. Total cost of the project would be in the neighbourhood of $30 million. Time lines for completion is the year 2000. Potential benefits through local employment and businesses is approximately $25 million. Potential energy savings to Inuvik customers is a 15 percent reduction in heating and power costs.
Most if not all regulatory requirements have been met and at the present time IPC is negotiating with potential customers to assure enough customers undertake conversion to natural gas to make the project viable. This includes negotiations with this government for conversion of government owned or controlled buildings within Inuvik.
Mr. Speaker, I seek unanimous consent to conclude my statement.