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Inuvialuit Petroleum Corporation
Inuvialuit Petroleum Corporation (IPC) was created in 1985 with the objective of becoming a profitable, medium-sized, diversified and integrated petroleum company.
IPC's portfolio of marketable securities, resulting from disposal of other producing assets, is earmarked for participation in northern oil and gas opportunities.
The Inuvik Gas Project was initiated in 1997 to supply Inuvik with natural gas from two wells at the Ikhil reservoir, located approximately 50 kilometres northwest of Inuvik on Inuvialuit lands.
IPC has a one-third interest in Inuvik Gas Ltd. (IGL) valued at $4.9 million and a one-third interest in the Ikhil Joint Venture which supplies natural gas to its customers: IGL and the Northwest Territories Power Corporation.
In the fall of 2011, IGL installed a synthetic natural gas (SNG) system as back-up to the Ikhil natural gas supply. In 2012, the decision was made, in consultation with representatives of the Town of Inuvik and the Government of the Northwest Territories, to switch to the SNG system as a primary energy source for customers in Inuvik in order to preserve the remaining natural gas reserves for periods when road closures interfere with propane supply and as emergency back-up.
The Ikhil J-35 well reserve is estimated to be available until spring or summer of 2018 on a P90 basis. Management has commissioned another reservoir assessment to have an up-to-date understanding of Ikhil’s lifespan. It is anticipated that abandonment of the well and plant site will commence around late 2018 or early 2019.
Notice regarding franchise agreement between Inuvik Gas Ltd. and Town of Inuvik
On December 7th, the Board of Directors of Inuvik Gas Ltd. (IGL) notified the Town of Inuvik of its intention to terminate the gas distribution franchise agreement between the Town and IGL effective December, 2018.
While IGL has decided that it is time to conclude its involvement in the distribution of gas in Inuvik, the company remains interested in and supportive of the long-term energy security needs of the families and businesses here in Inuvik.
Over the next 24 months, IGL will continue the safe and reliable operation of the existing gas distribution system and is committed to working with the Town in order to ensure an effectice transition to a new supplier.