Energy prices putting squeeze on North Shore communities: Toronto company proposes liquefied natural gas, distribution network.

• Author: Ross, Ian
• Position: SUPERIOR'S NORTH SHORE

The lack of a natural gas pipeline along the northern shore of Lake Superior is putting some communities at a competitive disadvantage.

While it's hardly a new problem, the high price of energy has the municipalities determined to look for alternative sources of fuel for heating and power.

Toronto-based Northeast Midstream is proposing a liquefied natural gas distribution network for Terrace Bay, Schreiber, Marathon, Manitouwadge and Pic River First Nation that will reduce, or possibly eliminate, their dependency on electricity, heating oil and propane.

The natural gas pipeline in the region only extends as far east as Nipigon, then tracks north along less rocky terrain on Highway 11.

"In our neck of the woods, we're never going to have a pipeline," said Daryl Skworchinski, CAO of the Town of Marathon. "The geography of the Canadian Shield just doesn't allow that."

Liquefied natural gas (LNG) is being hailed as the next best thing and a potential investment attraction tool.

"Anything we can do locally in terms of getting energy costs down, we feel is certainly going to improve our competitiveness when it comes to business," said Skworchinski.

The Ontario Energy Board (OEB) issued a directive in February from the Ministry of Economic Development, Employment and Infrastructure to expand natural gas distribution to communities that presently don't have access. The OEB is inviting companies to come forward with plans to access a pool of $230 million in loan and grants.

Northeast Midstream called a meeting in Marathon in late March with municipal, industry, hospitals, school boards and Confederation College officials in attendance to hear their concept.

The company already has been permitted to build its first LNG facility, a $100-million plant in Thorold, where it plans to supply the Great Lakes area and the northeast U.S. starting in late 2016.

Northeast Midstream wants a second facility in Nipigon to serve the mining, forestry and communities.

"The economic potential of this is massive," said Sean Irwin, special projects coordinator for the Township of Terrace Bay, who's taking the lead in polling industry players like Barrick Gold and Stillwater Mining, while liaising with government.

"We're at the stage where we're trying to learn as much as possible. We're relying on the government to give us some assistance and we're looking at this issue from all sides."

To make the...