1. Executive Summary
GNWT selected Canadian Gas Services International to complete the feasibility study of replacing diesel with natural gas to generate electricity in Fort Simpson.
This study determined the financial viability of the project by evaluating the revenue requirement for the gas distribution system and the power plant. The study compared the NPV of the total costs of the power plant for each of the gas options compared to the NPV of the power plant remaining on diesel. This study was based on the gas distribution system being in operation in 2016 and the study was conducted for a 20 year period. Furthermore, it was assumed that once natural gas is available in Fort Simpson, residential and commercial customers would also convert to natural gas for space and water heating applications and that natural gas would reach a market share of 80% over 8 years.