Ontario looks at LNG for Wawa, Marathon and area

The Ontario Government is looking at a wayto reduce energy costs in some northern Ontario towns.

The Province has committed $100,000from the northern Ontario Heritage Fund Corporationfor a feasibility study that will look at converting Marathon, Manitouwadge, Schreiber, Terrace Bay and Wawa to liquefied natural gas.

LNG conversion could help places that can't access traditional natural gas pipelines to use the inexpensive fuel,Minister of Northern Development and MinesMichael Gravelletold CBC.

"Liquified natural gas is a different form, and may I say, an odourless, non-toxic, non-corrosive form of gas that basically gets chilled so it can be transported by insulated vehicles," Gravelle said.

Converting Terrace Bayto LNGwould cut residents' heating costs by around half, mayor Jody Davis said.

People there currently heat their homes with electricity, propane or wood and that's expensive, he said.

"Over the last several years in January, February, March, many of our residents had electric bills that were over $1,000 a month, so that's quite a load for people that are on fixed incomes," Davisadded.

Davis said numbers provided to him by an LNG delivery company suggestLNG could be 55 per cent cheaper than electricity, 50 per cent cheaper than fuel oil and 45 per cent cheaper than propane.

Gravelle anticipates the results of the study within three or four months, he said.