Thank you, Mr. Speaker. Good afternoon. Aurora College, through the Aurora Research Institute, or ARI, is involved in a major research project in the Beaufort-Delta working with Natural Resources Canada and the Japan Oil, Gas and Metals National Corporation, an arm of the Government of Japan. ARI is assisting with the delivery of a major energy research program involving gas hydrates.
Japan and Canada have collaborated to advance research on gas hydrates for the past 10 years, having completed previous field projects at the Mallik site in 1998 and 2002. Japan has a keen interest in gas hydrates as it has sources offshore where there are immense challenges in conducting research. The work underway is pioneering new methods of extracting gas hydrates and the results of this research will not only benefit the NWT, Canada and Japan, but other locations where deposits of gas hydrates exist. Finding new sources of energy, particularly cleaner sources of energy, is important for the international community.
Mr. Speaker, gas hydrates are a solid form of natural gas, which is believed to be abundant in the Mackenzie Delta. The Mallik Gas Hydrates Research and Development Program is planned over two winters, 2006-07 and 2007-08. The goal is to see the first experimental production from gas hydrates. As gas hydrate deposits also occur in marine settings, Japan is interested in evaluating whether techniques developed and proven in the NWT are applicable to the production of Japanese offshore deposits.
Natural gas is a clean burning hydrocarbon fuel. Canada would benefit if gas hydrates could be developed as an environmentally sustainable resource. The NWT would benefit as estimates suggest the volume of gas hydrates in the Mackenzie Delta may equal or exceed that of conventional gas resources.
Mr. Speaker, the project is on track. Road construction was initiated in December and, in February, drilling equipment was mobilized to the site. Currently two research wells are being drilled. Between 100 and 115 people are working at the camp which has reached full
capacity. Despite harsh weather conditions, good progress is being made.
Mr. Speaker, Members of this House may take pride in this $50 million research project as it has an unprecedented role for Aurora College and ARI. The college is acting as a coordinator for field activities with major contracts following the terms of the access and benefits agreement signed with the Inuvialuit Development Corporation. This ensures that local businesses and joint ventures play a key role in the program with the majority of the program budget being spent on contracts with northern drilling and oilfield companies.
The Gas Hydrates Research Program is a good opportunity for Aurora Research Institute to take an active role in leading-edge research in the energy sector and could improve the ability of ARI to secure funding for other large-scale programs including alternate energy programs related to wind and hydro power.
Mr. Speaker, the NWT is focussed on all aspects of energy development in northern Canada. Responsible development of rich energy resources will play a key role in the economic development of the Northwest Territories and will have an impact on the Energy Strategy of Canada as a whole. Thank you, Mr. Speaker.
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