Supporting Inuvik's Energy Future: Understanding Our Recent Rate Increase

Families and businesses in Inuvik rely on natural gas for heating throughout some of Canada's harshest winter conditions. At the same time, the community’s energy system is facing growing reliability pressures, including declining local gas production, increased reliance on propane backup supply, transportation disruptions and peak winter demand. When temperatures drop, reliable energy is essential to keeping homes, businesses and public services safe and operating.

To address these challenges, IGL expanded propane storage capacity by 75 per cent and increased synthetic natural gas production capability. These improvements help ensure the community has access to reliable energy during periods of supply disruption, transportation delays, extreme weather and peak demand.

To support these infrastructure upgrades and the ongoing operation of a more resilient system, distribution rates will increase effective September 1, 2026.

New rates

Beginning September 1, 2026, IGL will increase its gas distribution rates for residential (rate one), general service (rate two) and Northwest Territories government customers (rate three) by $10.00 per gigajoule. While distribution rates have remained stable for many years, the primary reason for this adjustment is not inflation or the passage of time. It is the significant investment required to maintain safe and reliable energy service as local gas supply declines and additional infrastructure is needed to secure the community's energy future.

We understand customers may be asking why a rate increase is happening now after many years of stable rates. The answer is that the energy system is facing challenges that did not exist at the same scale a decade ago. Declining gas production, increased reliance on propane backup supply and the need for additional storage and system resilience required major investments to maintain reliable service for the community.

What the rate increase really means for you

The chart below explains how the rate increase will apply across customer rate classes in the Town of Inuvik. Since billing is based on actual consumption, customers are encouraged to review their past bills to better understand the potential impact on their monthly costs.

Investing in reliability and resilience

In recent years, natural gas production from the Ikhil well has declined significantly, and the well is no longer reliable enough on its own to meet the community’s energy needs. As a result, IGL must rely more on propane, which requires additional on-site storage and adds capital and operational costs. Reliable propane supply in Inuvik is especially important during winter road closures, when propane cannot always be shipped into the community.

To strengthen energy security, IGL expanded propane storage capacity by 75 per cent and increased synthetic natural gas production capability. These improvements provide greater operational flexibility and help keep energy flowing to homes and businesses during supply disruptions, peak demand, road closures and other unexpected challenges.

How the rate increase was calculated

This rate increase was not determined arbitrarily. It was developed through careful modelling and cost analysis to ensure it reflects the cost of strengthening the system while keeping natural gas cost-effective and fair for customers. Of the $10.00/GJ increase, approximately $5.50/GJ supports the cost of expanding propane storage capacity by 75 per cent, while the remaining $4.50/GJ supports ongoing costs of running and maintaining the system needed to keep the system reliable.

Our commitment to customers

We know this change will affect customers, and we do not take that lightly. Our commitment is to be transparent about why this adjustment is necessary and to continue operating efficiently while delivering safe, reliable and affordable energy service.

The energy supplied by IGL remains the most cost-effective energy source for the community and the investments being made today will secure Inuvik's energy future.

As a long-time community partner, IGL remains committed to serving Inuvik and supporting the people, businesses and organizations that rely on our system every day.

Read our Frequently Asked Questions >

July 6th, 2026

Effective September 1, 2026, Inuvik Gas distribution rates will increase to:

• $45.44/GJ for residential and general service customers
• $51.00/GJ for government customers

These rates reflect a $10.00 increase for rate one, two and three customers. Please note that billing is based on actual consumption.

To ensure a reliable and secure energy supply for the Town, IGL has made significant improvements to its energy infrastructure and operations. These improvements were driven by a significant decline in natural gas production from the Ikhil Joint Venture well, as well as operational challenges including extreme cold weather events and periodic road closures that affected the reliability of propane deliveries to the community. We modernized the gas distribution system by expanding its propane storage capacity by 75% and increased synthetic gas production to meet the needs of the community. We expect an improvement in the system reliability for the Town of Inuvik.

We recognize that any increase affects our customers and we remain the most cost-effective energy source for the community. Inuvik Gas is committed to being a dependable long-term energy partner for Inuvik.

For any questions, please contact: info@inuvikgas.com or (867) 777-3422