Government of Yukon

January 10, 2014

Government of Yukon authorizes natural gas power generation in Watson Lake

WHITEHORSE—The Government of Yukon has issued the Yukon Electrical Company Limited with a Liquefied Natural Gas (LNG) licence to install LNG storage and vaporization facilities. This will enable the company to modify the existing generator system at the Watson Lake power plant and use a combination of diesel fuel and natural gas to generate electricity for the community.

“This is the first licence we have issued under our new Gas Processing Plant Regulation,” Minister of Energy, Mines and Resources Scott Kent said. “This regulation is designed to ensure that any facility that handles LNG is safe. It uses the highest standard in Canada for the safe operation, maintenance and decommissioning of an LNG facility.”

The 25-year licence will allow Yukon Electrical to truck LNG to a storage facility and vaporize it for use in power generation. In the first phase of the initiative, one generator will be modified for bi-fuel use, a LNG storage tank will be installed and air emissions will be monitored. A potential second phase would see the remaining five generators being modified for bi-fuel use.

The Yukon Electrical Company Limited will require further approvals from the Government of Yukon before undertaking activities at the facility such as construction and operation.

A Benefits Agreement covering this project—under the Yukon Oil and Gas Act—is in place between Liard First Nation, Ross River Dena Council, Yukon Electrical Company Limited and the Government of Yukon.

The Government of Yukon’s new Gas Processing Plant Regulation was enacted on
July 31, 2013.

Learn more
For more information or to view the licence, visit



Elaine Schiman
Cabinet Communications

Jesse Devost
Communications, Energy, Mines and Resources

News Release #14-003