North Shore gas project still in the works: communities look to leverage federal infrastructure dollars.

• Author: Ross, Ian
• Position: NORTHWESTERN ONTARIO

If liquefied natural gas (LNG) distribution ever becomes reality to residents and industry along the Lake Superior's North Shore, it's going to require some federal buy-in to make it happen.

That was the takeaway for Marathon CAO Daryl Skworchinski after a meeting with provincial infrastructure ministry officials in early May to learn the details on a revised natural gas program.

The $100-million provincial grant program, designed to expand natural gas networks in rural areas, is likely only "seed money" to fund the five-community project, said Skworchinski. "It's certainly not enough. "We're going to have to go to the feds for the dollars."

Skworchinski said they'll have to huddle with Thunder Bay Superior-North MP Patty Hadju to learn about some of the funding parameters behind the proposed Canada Infrastructure Bank, a Crown agency created to leverage private capital to help fund major construction projects.

For two years, the communities of Terrace Bay, Schreiber, Marathon, Manitouwadge and Wawa have worked on the LNG project with Northeast Midstream, a southern Ontario energy developer, to study the feasibility of trucking liquefied natural gas to distribution points in each of the communities, and possibly to industry.

The area's rugged topography doesn't allow of expansion of natural gas pipelines.

Last winter, the LNG project and its business case looked to be in jeopardy when the province announced it was changing and repackaging the natural gas expansion fund from a combined $200-million loan and $30-million grant program to an entirely $100-million grant program.

Though there's still no guarantee the LNG project will come to fruition, Skworchinski expressed confidence in their case since they have a private developer in place, and that their...