New LNG Power Plant Project Announced for Fort Simpson

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A new liquefied natural gas power plant is set to be built in Fort Simpson, with significant investments from the Canadian government and local authorities.

FORT SIMPSON, N.W.T.— A collaborative effort among the Government of Canada, the Northwest Territories Power Corporation (NTPC), and the Government of the Northwest Territories (GNWT) is underway to develop a new liquefied natural gas (LNG) power plant in Fort Simpson. The Government of Canada is set to invest over $31.3 million through the Investing in Canada Infrastructure Program’s Arctic Energy Fund, while the NTPC is contributing upwards of $10.4 million, according to a recent press release. The GNWT has taken steps to support this initiative by submitting funding applications and conducting prefeasibility studies to assess both the technical and economic viability of the project. The existing diesel power plant in Fort Simpson has become increasingly susceptible to erosion along the Mackenzie River and is approaching the end of its operational lifespan. Consequently, this new project aims to facilitate the construction of a combined generation facility that will predominantly utilize LNG for power generation. The facility will consist of two LNG generation units, each rated at 1.6 MW, complemented by two backup diesel generation units. It is anticipated that the operation will rely on LNG for 90 percent of its fuel needs. Additionally, the new plant will feature an LNG storage and vaporization facility, a bi-fuel boiler for heating applications, bulk diesel fuel storage, a substation, and necessary auxiliary equipment. The backup diesel generators currently in use at the existing plant will be relocated to the new facility as part of this transition.

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