Inuvik Gas cancels 10-year deal to supply fuel to Town of Inuvik
Company was 2 years into its renewed contract to supply natural gas and synthetic natural gas
After a partnership spanning two decades, Inuvik Gas Ltd. is cutting ties with the Town of Inuvik.
The company has cancelled its current 10-year agreement to supply gas to the town, only two years into its renewed franchise agreement.
"Inuvik Gas had an option within the first two years to say they'd like to terminate the franchise agreement, which they have now given us," said Grant Hood, Inuvik's senior administrative officer.
Hood said that the company did not give them a specific reason for ending the deal.
According to the Inuvik Gas website, its board of directors notified the town of the termination on Dec. 7.
Inuvik Gas has not responded to a request for comment.
Since about 1999, Inuvik relied on two nearby natural gas wells to heat homes and business, and to power cooking appliances, hot water heaters and dryers. But when the town's natural gas wells began to run dry, in 2012 Inuvik Gas began supplying the town with synthetic natural gas trucked up from the south.
The company will continue to supply natural gas and synthetic natural gas until December 2018.
Now, the town is looking at its options for fuel distribution.
"We may hire a consultant to come in and advise us," said Hood.
"There's a number of different options we have that we will start looking at this year."