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Energy
Self-Sufficiency
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Development of a local, and heretofore untapped, energy resource.
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Reduce and displace mainland gas currently delivered through twin
under-sea pipelines.
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Benefit of a local supply will be to extend the operational life of the
existing twin gas lines.
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Project will help meet Island gas demand which is growing at a rate of 15%
per year.
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Degassing local coals will reduce the risk of coal-mine explosions: over
1,000 miners have been killed in Vancouver Island by gas explosions.
Energy Supply
At full build-out, the project would contribute approximately 60% of today’s
natural gas demand and approximately 30% of the demand forecast in 2005.
Energy
Prices
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Gas transport to Vancouver Island from the mainland is approximately C$0.80/MCF;
sourcing gas on the Island will avoid some of this cost. Net savings,
when gas transport costs from Northern BC are factored in, are closer to
C$1.50 per MCF.
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Vancouver Island’s residential gas price has seen a 13.5% increase this
year compared to 2000. As a result, most residential customers will pay
approximately $10 more per month for natural gas.
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The VWV project will mitigate the impact of future rate hikes and spot
market price swings.
E mployment
- Local employment opportunities will include surveying, engineering,
environmental monitoring, the drilling and equipping of wells, gas gathering,
water management, metering, odorizing, dehydration, and compression.
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80% of the work and materials will be supplied locally.
- 300 persons are anticipated to be needed directly and indirectly during
construction phase.
- The day-to-day operations and management will be carried out by a team of
approximately 35 local residents.
Economic Benefits
- The infusion of new capital and resulting energy supply will enhance the
Island’s ability to attract additional capital and “clean” industries for
continued economic growth.
- At peak production, approximately C$500,000 per day will be generated by the
project.
- Based on U.S. CBM project experience, this will have a significant multiplier
effect on the Island economy ( Economic Impact of CBM Development On Jefferson
and Tuscaloosa Counties, The Center for Business and Economic Research,
School of Mines & Energy Development, University of Alabama, Bill Gunther,
PhD, March 1989).
- Project may defer the need for the estimated C$180MM Georgia Strait Crossing
pipeline: the BChydro-proposed 100 MMCF/day, 16” 2200 PSI gas line to fuel the
existing Campbell River Co-Generation plant.
- Provincial and federal taxes, personal income taxes, property, mineral
and ad valorem taxes will be paid by the project.
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