Yesterday in Marathon, Minister Michael Gravelle announced the funding of a feasibility study to explore the benefits of converting to liquid natural gas (LNG). $100,000 will be invested in a two-part study that will determine the cost estimates, interest, technical requirements and economic and environmental advantages of liquefied natural gas (LNG) conversion. The communities of Marathon, Manitouwadge, Schreiber, Terrace Bay and Wawa will be participating in this study.
Mayor Ron Rody stated that Wawa is looking forward to hearing what this study will reveal. Transportation, communications and energy are crucial in developing economic opportunities; and this study will determine these benefits not only to business but residents.
LNG is natural gas cooled to -162°C, converting it into a liquid for easy and safe transportation to communities by truck. It has a very high energy density, so it can be trucked long distances and still be economical to use as fuel. One truck trailer of LNG can deliver up to 5 times more energy than a trailer of compressed natural gas (CNG).
Schreiber, Terrace Bay, Marathon, Manitouwadge, and Wawa have signed gas franchise agreements to extend gas service to approximately 11,000 Ontario residents and businesses via Northeast Midstream LP. Joshua Samuel, President and CEO of Northeast Midstream LP, said, “We are incredibly encouraged by today’s announcement as it shows tremendous faith on the part of the government in this study. We have committed financial and technical resources to leverage the province’s and the municipalities’ funding to conduct the remaining feasibility analysis.”
LNG would be brought to Wawa and the other communities via ROAD (Remote Ontario Access and Distribution) Energy; building and operating local gas delivery systems, where the natural gas supply will be transported to communities as liquified natural gas (LNG). The local gas distribution facilities and rates will be regulated by the Ontario Energy Board.