The Alberta government may be stepping in to get a $6 million natural gas access project in Nordegg across the finish line.
Officials with Clearwater County say it has committed $1.4 million as a cost contribution to the project, while the contractor, Rocky Gas Co-op, has committed the same, should the project go ahead.
To make up the shortfall, the County has joined Rocky Gas Co-op to lobby the provincial government to fund the remaining $3.2 million for the project, says Erik Hansen, director of public works for Clearwater County.
While funding has yet to be secured, Clearwater County council recently received a letter from Devin Dreeshen, Minister of Transportation and Economic Corridors, stating that his department has asked provincial staff to develop a special request for funding that the Alberta government can consider.
Currently, Nordegg residents and businesses have only heating oil, propane, or electric heat as options.
Hansen says concerns have been raised over the safety of multiple propane tanks in close proximity to each other. Additionally, he says propane tends to gel off in cold temperatures leading to freezing of water infrastructure.
“It’s a vital project for Nordegg in many ways,” says Rocky Gas Co-op board director, Genny Mehlhaff. “Propane is not as safe as natural gas. Having infrastructure in the ground is significantly safer. I’ve been known to call them ‘propane bombs’ right in front of the ministers.”
Mehlhaff points to other environmental and safety concerns such as the ability to shut off natural gas in the event of a wildfire, an option that’s not available with propane tanks.
While natural gas is typically cheaper than propane, Mehlhaff says propane is also more convenient as permanent and seasonal residents would have a consistent supply of natural gas.
A strong supporter of the project, Rimbey-Rocky Mountain House-Sundre MLA Jason Nixon says he’s going to be advocating for the project in the legislature this fall.
“We’re working hard with the Department of Transportation, who we think is best to be able to support the County and the gas co-op,” says Nixon. “We’re going to continue to make sure both the finance minister and the transportation minister know that this is a significant priority for Clearwater County.”
Nixon says he anticipates a positive conversation with the provincial treasury board this upcoming fall.
There’s a certain economic urgency to seeing the project completed, as Hansen says the County has heard from potential developers that large scale developments are not feasible to be heated with propane. This has deterred some developers in investing in the community, he says.
In preparation for the eventual servicing of natural gas in Nordegg, Hansen says the County has installed natural gas line infrastructure in all new residential and commercial development in the Nordegg hamlet site.
Officials say the delivery of natural gas to Nordegg creates the potential to attract new industry and tourism for the area.
The project is ultimately an 11.5 km line from the gas supply at the Tidewater Stolberg Facility (east of Nordegg) to Nordegg.
There are multiple logistical challenges to running the line, says Mehlhaff, with cost, environmental and safety concerns being more substantial in the mountainous region.
“Statistically and historically, when you’re able to just plow through (the landscape) like a lot of gas co-ops across the province are able to do, it’s significantly cheaper,” says Mehlhaff. “Going through rock and under water bodies, it’ll be a higher expense and challenge, for sure.”
Officials say it’s a “wait and see” period to see if the province will provide the remaining funding.
“We’re hoping that we’ll have great news very soon,” says Mehlhaff.
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