Multi-million Arctic project faces collapse

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The Canadian government has reportedly halted construction of the long-delayed Nanisivik naval refuelling facility in the Arctic. First announced in 2007 and originally scheduled for completion in 2015, the project remained unfinished due to technical difficulties and rising costs.

The government made the decision after considering the facility’s high operating expenses and the availability of more practical alternatives such as the ports of Iqaluit and Milne.

Another reason behind abandoning the project is Canada’s renewed Arctic patrol fleet. The newer and more capable Harry DeWolf-class vessels can operate over longer distances without frequent refuelling, significantly reducing the strategic need for the Nanisivik station.

For the facility on Baffin Island to function during winter, specially heated fuel tanks were required to prevent diesel fuel from thickening in extreme cold conditions. This sharply increased the project’s financial burden.

The project also encountered a rare Arctic-specific problem — microbiologically influenced corrosion caused by cold-water bacteria. Eliminating this bacterial corrosion on the port pier alone would have required an additional estimated $180 million.

More than $70 million has already been spent on the project. If officially cancelled, the remaining infrastructure is expected to be dismantled and environmental restoration work carried out at the site.