Canada to Discontinue Construction of Nanisivik Arctic Naval Facility
Canada is reportedly discontinuing construction at the long-delayed Nanisivik naval refueling station in the High Arctic. The naval project was initially announced in 2007 by the former Prime Minister Stephen Harper, with construction expected to be completed by 2015. Unfortunately, technical challenges and cost increases have left the project in limbo, at a time when Canada is moving to strengthen its sovereignty in the High North.
According to a report by the Globe and Mail, Canada’s federal government decided to stop the Nanisivik project due to concerns of high operational costs. In addition, as the government invests in Arctic infrastructure, there are other viable options to base the naval refueling depot. These include the deep water port in Iqaluit as well as the recently approved private port of Milne, owned by Baffinland Iron Mines.
The move would come as Canada is, however, upgrading its Arctic patrol ships, with several ships on order and the recent launch of CCGS Donjek based on the Harry De Wolf class. These newer and more powerful vessels could sail longer than the traditional patrol fleet, thus requiring less refueling. According to the report, this has made further investments in Nanivisik project unnecessary.
Canada’s government is yet to officially announce its decision to abandon the project. But unnamed government sources quoted by the Globe and Mail said that conditions have shifted and Nanivisik now offers limited value to the navy. “It makes sense to redirect resources to other Northern infrastructure plans. The government will remove all infrastructure related to the facility and conduct environmental remediation.”
Nanisivik station, located on the northwestern coast of Baffin Island, was initially expected to be an all-season marine port. However, project cost overruns saw the port only operate for a few weeks in the summer. To operate year-round, the facility required the installation of heated storage tanks to prevent diesel from crystallizing in cold temperatures.

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Other refurbishment plans for the site that were dropped due to costs include the construction of a new jetty with a 50-year design life. Later, corrosion problems with the original jetty emerged, and a mitigation plan took longer than expected. Construction projects in the Arctic are exposed to unique technical risks, including corrosion attributed to cold-water bacteria. This biologically induced corrosion is uncommon in temperate waters.
Some government reports estimate that it would cost about $180 million to fix bacterial corrosion at Nanisivik wharf. Overall, Ottawa has spent over $70 million on the Nanisivik refueling station.
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