The mayor of Tuktoyaktuk, N.W.T., says it's time for the community to start using its nearby natural gas reserves.

The hamlet of Tuktoyaktuk spends more than $7 million a year on energy, even though it only has a population of about 900 people.

All of the town's electricity and most of its heating comes from diesel, which can be expensive to bring up by barge. Diesel is also one of the less environmentally friendly energy sources available.

Mayor Merven Gruben says a switch to natural gas would reduce bills for heating and electricity.

Gruben has been talking with the Canadian Northern Economic Development Agency and the local oil and gas industry about the idea.

Tuktoyaktuk is surrounded by some of the largest natural gas reserves in Canada. The proposed Mackenzie Gas Project would build a pipeline to run natural gas from the Beaufort Delta through the Northwest Territories and down to Alberta.

Industry says it's not worth it to build a well in Tuktoyaktuk for so few paying customers.

About 20 years ago, the Inuvialuit looked into the idea and their report was favourable. But so far, there hasn't been any money from government or the private sector to build one.

Gruben says things have changed in the last few years. The community has built an access road to a gravel site which runs right beside one large natural gas reserve.

Gruben suggests companies could power turbines at the gas well and then send electricity to Tuktoyaktuk, which would be much cheaper than building an entire pipeline down the Mackenzie Valley.

Gruben is looking to get funding for a feasibility study to look into the idea.

Meanwhile, Inuvik is also looking to replace its gas supply. The community has been running on natural has for years, but it now has to find a new source because the nearby Ikhil well is running out sooner than expected.

Gruben says another idea could solve both Beaufort Delta communities’ energy problems. He suggests connecting both towns to the same natural gas supply by running a line alongside the proposed all-weather road.

“They make these pipelines that come in half a kilometre rolls, and you can roll that alongside the road and bury it, and the natural gas can feed Inuvik. That can be done in two, three years,” said Gruben.

The territory and the federal government have not yet responded to the idea.