Welcome to Northern Dancer Energy Inc.
NDE will provide power generation in the NWT using clean burning Alberta natural gas. We will offer lower cost electricity.
Jim Doody (403) 978-6376
PROJECTS
Electricity and Natural Gas
Gold Mine - Natural Gas for Roasters and Boilers
Gold Mine - Natural Gas for Roasters and Boilers
We will be providing electricity and natural gas for the new mines located north of Yellowknife. The new mine power requirements is estimated at 50 - 60 MW. This project will make the NWT natural gas fields economic.
Gold Mine - Natural Gas for Roasters and Boilers
Gold Mine - Natural Gas for Roasters and Boilers
Gold Mine - Natural Gas for Roasters and Boilers
The mining district, located north of Yellowknife, has history of single a refractory ores. This will require natural gas, to extract the gold at high temperatures, using Roasters and boilers.. The necessary infrastructure will be required for the mining companies to develop Tier 1 assets, that can produce 500,000 ounces per year for 10 y
The mining district, located north of Yellowknife, has history of single a refractory ores. This will require natural gas, to extract the gold at high temperatures, using Roasters and boilers.. The necessary infrastructure will be required for the mining companies to develop Tier 1 assets, that can produce 500,000 ounces per year for 10 years. Project economics will require an 8 million ounce discovery.
Norman Wells Oilfield Purchase and Redevelopment
Gold Mine - Natural Gas for Roasters and Boilers
Norman Wells Oilfield Purchase and Redevelopment
We are investigating the purchase and redevelopment of the Norman Wells oil field. This will include horizontal drilling and a polymer flood, to extend the life of the field by 7 - 15 years.
Northern Dancer Energy Inc.
1.0 GENERAL
Northern Dancer Energy Inc., is a privately held Alberta Corporation, with a head office located in Calgary, Alberta. We plan on working in partnership with Canadian First Nations, who will take a lead role with environmental assessments, legal, regulatory and right of way issues, as well as government relations. The Government of Canada has implemented a new climate change strategy, encouraging the use of cleaner burning fuels such as natural gas, for heating and power generation. The City of Yellowknife, in the Northwest Territories, currently utilize diesel fuel for generating power. The existing mines located NE of Yellowknife, also use diesel fuel for power generation. Our plan is to run a high pressure natural gas pipeline from Alberta to Yellowknife, and install a larger scale, gas fired power generation plant, to serve the NWT. This new infrastructure will reduce electricity and heating costs in the Northwest Territories, which also reduces subsidies paid by the Government of Canada, to the local government. This infrastructure will reduce our carbon footprint, throughout Northern Canada, in alignment with the climate change program. The pipeline will begin near Zama Lake, Alberta and be routed north on Highway 35 to the Northwest Territories border, following Highways 1 and 3 through to Yellowknife. A 60 MW power plant will be built at Yellowknife, linked to the 144 kV "Diamond" Transmission Line and Substations. Communities served by Phase I will include Enterprise, Kakisa, Fort Providence, Behchoko and Yellowknife. Phase II will include future transmission lines to Pine Point, Fort Resolution and Fort Smith. Phase III will include Fort Simpson and Dettah tie in’s. The purpose of this development plan, is to outline the base scope of work, which will be firmed up in the next stage of the project, which is the PRE-FEED stage. During the PRE-FEED phase, we would determine the gas supply and reserves, tie-in points, line size, compressor size and locations, hold preliminary gas supply discussions with utilities, investigate federal loan guarantees and investigate any short term subsidies. We will be following a similar plan used by TransCanada Pipelines in 1956, to construct Line 1 from Burstall, Saskatchewan, through to Southern Ontario and Quebec. The TransCanada Pipeline proposal relied on Government of Canada loan guarantees for their debt, to get their pipeline built.
2.0 SCOPE OF WORK
The following is the scope of work for Phase I of the GHG emission, reduction project:
1. Install 12” high pressure natural gas pipeline (12" line may increase in size due to further complexities of the development process) between Zama Lake, Alberta and Yellowknife, NT. Injection points can be provided to accept natural gas, from gas fields in the Cameron Hills, NT.
2. Provide current injection type, cathodic protection, along the buried portion of the pipeline.
3. Construct three 10 MW compressor stations between Yellowknife and Enterprise. One compressor shall be installed at Zama City, and one at the Alberta export station. All compressors shall be constructed complete with aerial coolers, to allow recycling of gas without shutting down due to high discharge temperatures.
4. Install Sales Meter Stations (SMS) at Enterprise, Kakisa, Fort Providence, Behchoko, the Yellowknife Power Plant, the West Yellowknife community and Yellowknife City SMS.
5. Install a 60 MW power plant at Yellowknife, with substations at Yellowknife Power Plant, Yellowknife North/West/East, Lac de Gras North/South and Gaucho Kue. Install new 144 kV Transmission Line (Diamond Transmission Line), to connect power plant to substations.
6. The local gas distribution company (LDC) for Yellowknife, will be developed as a subsidiary company, after completion of the mainline. Costs for developing the LDC are not included in this estimate (By First Nations). The high pressure mainline terminates at the Yellowknife Power Plant.
7. The main control center for the pipeline, power plant and transmission lines, will be located outside of Yellowknife and operated by local technicians. Operations staff will be based in Yellowknife and Enterprise. We will utilize a “fly in fly out” staffing (FIFO) plan, using a corporate all-weather aircraft, which will allow us to access experienced technicians across Alberta and the NWT. This will allow us to recruit and train local staff.
8. We will utilize a small plane or helicopter to fly the pipeline and transmission lines once a week. The plane / helicopter will be stored and maintained at the Yellowknife airport. The benefit of a helicopter is that we can fly technicians from Yellowknife directly to compressor and meter stations, substations and transmission line locations, to address any maintenance issues.
9. We will provide a new high speed fiber optic cable, linking Alberta, with all NWT communities along our right of way, including Yellowknife, and the mines.
10. Norman Wells Oilfield redevelopment with a polymer flood and horizontal drilling.
11. Provide funding of Roaster for new North Yellowknife Mine (Gold Snowshoe Mine).
3. Yellowknife Local Gas/Water Distribution Company (LDC)
Upon completion of the pipeline, a local gas distribution company (LDC) will be developed, as an independent First Nations company, to distribute natural gas within the City of Yellowknife, for use by homes and businesses for heating. In addition, we can design and install the water infrastructure to provide potable water to Oldtown Yellowknife & the Kam Lake area, eliminating the requirement for trucking of water.
4.0 FUEL OIL DISTRIBUTION AND EXISTING POWER GENERATION, AND DISTRIBUTION ASSET ACQUISITIONS
In order to obtain project approval from the local jurisdictions, it may be necessary to acquire existing fuel oil distributors & diesel power generators that will be displaced, once the new infrastructure is in service. This allows us to remove objections to our permit, by dealing with the stranded asset issues up front in the development process. Diesel fuel is currently brought in by rail and trucked to site. Portions of NWT power are generated with diesel fuel, hydro and CNG.
5.0 DEVELOP THE EXISTING PINE POINT LEAD ZINC MINE ASSETS
It is our intention to work with the new mine owner, to redevelop this mine using natural gas and electrical infrastructure. It is proposed that the new mine equipment will be electric, similar to the Syncrude mine. The heavy haul trucks could be electric or utilize compressed natural gas (CNG), with CNG fueling stations installed between Pine Point and Enterprise. The ore will be shipped to Enterprise, for export by rail. The use of electricity, natural gas and electric powered machines, instead of diesel, will improve profitability of this operation.
6.0 PREPARE LONG TERM PLAN, FOR ROUTING OF NEW FIBER OPTIC CABLE, TO YELLOWKNIFE AND THE OPERATING MINES, LOCATED NE/NW OF YELLOWKNIFE
It is recommended that a new fiber optic cable, be provided, to each of the mines, the City of Yellowknife, and all towns along the mainline. This project could utilize new cost recovery mechanisms, such as including the cost of fiber optic service in the natural gas and electricity rates. This would benefit the residents and mines by providing high speed internet, with their power service.
7.0 COST ESTIMATE
Cost estimate for a 12" pipeline, 5 gas turbine driven compressor stations, sales meter stations, 60 MW power plant, Substations at Yellowknife West/East/North, Lac de Gras North/South and Gaucho Kue, a 144 kV transmission line to the end user substations, and a fiber optic connection to Alberta, is $3.499 Billion CDN.
8.0 FINANCING AND ECONOMICS The company will initially be funded with $20 million in capital, for the pre-feasibility stage, and will be 100% owned by the parent company, Northern Dancer Energy Inc. The project would be funded with 30% equity and 70% debt, during the construction phase. We are proposing that the 70% debt component, be guaranteed by the Government of Canada (GOC), similar to the same 1956 arrangement with TransCanada Pipelines. It is estimated that return on capital would be 9%, and that the bonds would yield 5.0%, based on GOC loan guarantees. Northern Dancer Energy Inc. will provide the 30% equity component.
9.0 BENEFITS
The benefits of supplying Yellowknife with natural gas, are as follows:
(a) Homeowners and businesses benefit due to reduced electricity and heating costs for their homes.
(b) New power generation, transmission and distribution assets will open up development opportunities for mining and jobs.
(c) Government subsidies for power generation in Yellowknife and Hay River can be reduced, due to lower fuel costs.
(d) This infrastructure will allow Yellowknife to compete with Northern Ontario, British Columbia and Quebec for development of future mining projects. Yellowknife will become a low cost center for gold and cobalt mining in northern Canada.
(e) New mines near Yellowknife would have access to low cost electricity, making future development more economic.
(f) New mines, more local employees, construction and increased economic activity will benefit the local economy and tax base.
(g) The competing pipeline proposal to take northern gas south from the Beaufort Sea, is estimated to cost $16 Billion, versus $1+ Billion, to ship Alberta gas north. This is the most cost effective alternative in the current price environment and this project can be completed within 5 years.
(h) Development of this pipeline will encourage development of the Cameron Hills oil and gas field within the NT border, reactivation of the Pine Point lead zinc mine and construction of at least one new gold mine.
(i) Provides high speed internet access, to all towns and mines along the right of way.
(j) With a downturn in the oil and gas industry, this project would provide much needed jobs for the Alberta and NWT trades.
(k) Opportunities for equity participation in these projects, by local Native Groups, living along the project right of way.
10.0 Future Projects
There are opportunities to ship fuels (regular, premium, diesel and aviation gas) between Hay River and Yellowknife, in a 4"-6" pipeline. This would be a bolt on project, to link the fuel storage sites, that would be purchased in Phase I. This would reduce fuel costs in Yellowknife and at the northern mines. This will include a new 3 Lane, fuels loading rack, including ethanol unloading, to serve the Yellowknife hub. This will allow us to provide rack pricing for fuels in Yellowknife, and reduce fuel truck traffic beytween Hay River and Yellowknife.
11.0 SUMMARY AND CONCLSIONS
Our proposal is to design, and build a 750 km natural gas pipeline, between Zama Lake, Alberta, and Yellowknife, NT. A new Corning fiber optic cable will be provided to connect Alberta with Yellowknife. New power generation, substation, distribution and transmission assets will be constructed, allowing further industrial development of the north. This infrastructure will allow residents and business owners to benefit from lower electricity and heating costs. Governments will benefit from reduced subsidies for power generation. This development will lead to new lead zinc mine at Pine Point. These reduced costs will help the mining industry, near Yellowknife, expand and grow the local economy, benefiting all Canadians. This is the Green New Deal for the NWT.
Redevelopment of the Norman Wells oilfield using polymer flood and horizontal drilling can extend the life of the field by 7 - 15 years.