Canada’s Northland Power Income Fund said it plans to spend C$700m ($657.7m) to build a natural-gas-fired power plant to provide power to the Saskatchewan energy system.

The 20-year deal with Saskatchewan Power Corp calls for the construction of a 261MW natural-gas-fired combined cycle plant near North Battleford, Saskatchewan.

All power from the plant will be sold to SaskPower.

Northland said it expected construction to begin in July and commercial operations to start in 2013, reports Reuters.