Federal government invests over C$31.3M in new LNG power plant for Fort Simpson, N.W.T.

Full report

The Government of Canada, the Northwest Territories Power Corporation (NTPC) and the Government of the Northwest Territories announced on October 14, 2026 that they will build a new liquefied natural gas power plant in Fort Simpson. Ottawa is contributing C$31,312,500 through the Investing in Canada Infrastructure Program's Arctic Energy Fund, NTPC is contributing C$10,437,500, and the territorial government provided key funding applications and prefeasibility studies on technical and economic viability.

The existing Fort Simpson diesel plant has become vulnerable to erosion along the Mackenzie River and is nearing the end of its operational life. The new facility will include two 1.6 MW LNG generation units and two backup diesel units, an LNG storage and vaporization facility, a bi-fuel boiler for heating, bulk diesel storage and a substation. The backup diesel generators from the existing plant will be relocated to the new site.

Crown-Indigenous Relations Minister Rebecca Alty said the federal investment of over C$31 million will reduce emissions by lowering diesel reliance and give the community dependable power for years to come. NTPC president and CEO Cory Strang said the new plant will cut greenhouse gas emissions and noise, and will better integrate future renewable projects into the local grid.