Thank you, Mr. Speaker. Mr. Speaker, the Government of the Northwest Territories is committed to ensuring all Northerners benefit from resource development. As I have stated before, those benefits must include employment, training and business opportunities for Northerners. In the case of natural gas development, it should include access to a less expensive and cleaner burning fuel than oil or diesel.
The Inuvik Natural Gas Project is a good example of how Northerners can benefit from resource development in their own backyard. In 1998, the Inuvialuit Petroleum Corporation, AltaGas Services Incorporated and Enbridge Incorporated formed a partnership to bring natural gas from the Ikhil field to supply the energy needs of the town of Inuvik.
The Department of Resources, Wildlife and Economic Development funded a portion of the initial research on this project. We have been strong supporters of the project from the very beginning.
Two natural gas wells are now operational and the gas is flowing through a transmission pipeline ready for distribution to commercial and residential consumers in Inuvik. To ensure local residents benefit from the reduction in energy costs, the department is continuing its support for the project by providing funding to help residential consumers switch to natural gas heating. Heating conversion costs are high and result in a substantial initial cash outlay for the consumer. The Department of Resources, Wildlife and Economic Development will be providing conversion grants to cover up to one third of the initial cost, to a maximum of $1,350 dollars per conversion. Inuvik Gas Limited will provide a matching grant. RWED will provide up to $300,000 for the Inuvik Natural Gas Conversion Program in 1999-2000 with an additional $200,000 available in 2000-2001.
This program will result in the reduction of residential energy costs in Inuvik. It also allows the Northwest Territories to demonstrate its commitment to the reduction of greenhouse gas emissions. Natural gas is considered to be a cleaner burning fuel than either oil or diesel. This switch from diesel to natural gas will result in a substantial reduction in greenhouse gas emissions.
Mr. Speaker, over 150 people have been invited to Inuvik to join the grand opening celebrations over a three day period. On Friday, September 10, there will be ribbon cutting ceremonies at the sites for the Inuvik Gas Limited and the NWT Power Corporation. The Honourable Floyd Roland, MLA for Inuvik, will attend on behalf of the Government of the Northwest Territories.
Mr. Speaker, I would like to take this opportunity to congratulate all the parties involved in this project. The vision of the Inuvialuit Petroleum Corporation with its partners AltaGas and Enbridge have provided reduced energy costs and employment, training and business opportunities for residents of Inuvik and the region. Let us strive to ensure all resource development continues to provide similar benefits for Northerners. Mahsi cho.
--Applause.