Thank you, Mr. Speaker. Mr. Speaker, yesterday, I spoke about the proposed shovel-ready LNG pilot project. I would like to follow up today to talk about what I see as the direct benefits of this proposal.
Mr. Speaker, by looking at this pilot project and using the NWT gas, there would be a justification of recommissioning the Cameron Hills gas field located within the Northwest Territories that has currently been shut in and is not producing. By doing this, it means more royalties and taxes on natural gas produced and processed within the NWT.
This proposal could reduce the government's financial burden for the subsidies distributed to power consumers through the Territorial Support Program.
Mr. Speaker, the company proposal includes supplying a fully integrated LNG solution and fronting the proposed capital expenditures, inclusive of supply of power generation equipment as an option, and they can reduce the current power costs and benefit consumers in the North.
Each LNG truck delivers the equivalent of up to 16 trucks, thus reducing diesel consumption for fuel deliveries and traffic on local roads. LNG reduces the carbon footprint for energy source deliveries and would further reduce energy costs by up to 40 per cent for power generation.
Mr. Speaker, LNG within the NWT would be the first sustainable long-term and affordable energy source for the people of the Northwest Territories, thereby reducing diesel fuel.
LNG-sourced energy from the NWT would protect from future price spikes of oil, propane, and diesel.
Mr. Speaker, LNG could potentially reduce the impact from the imminent federal and territorial carbon tax implementation. LNG would drastically reduce the carbon emissions and greenhouse gases for existing power generation and can be used as a potential future heating source.
LNG could qualify the NWT for green credits and additional federal funding or our ability to facilitate the sale of carbon credits.
Finally, Mr. Speaker, this would support and create local employment. It would help reduce the cost of living for the three communities in the beginning, but, as it expands, we could see a huge reduction for all residents of the Northwest Territories. Thank you, Mr. Speaker.