Province to Regulate Gas Liquids Exports

The government of Nova Scotia will introduce legislation to regulate the export of natural gas liquids to ensure adequate supplies are available for the development of a petrochemical industry in the province.

"Sable gas is a Nova Scotia resource, and we mean to ensure Nova Scotians are the ones who benefit most from its development" said Petroleum Directorate Minister Manning MacDonald today at a Halifax news conference.

Energy Removal Certificates regulations for petrochemicals have been in place for some time in other jurisdictions, including Alberta and British Columbia. The development of a petrochemical capability in Nova Scotia was a centre-piece of the memorandum of understanding signed in December 1997 by the province, the Sable Offshore Energy Project partners and Maritimes and Northeast Pipelines. In that agreement, the partners guaranteed the province sufficient supplies of gas liquids -- such as ethane, butane and propane -- to supply a domestic petrochemical sector. This enabling legislation will provide the legal basis for the administration of the agreement. The market would dictate the prices paid for such liquids.

Mr. MacDonald said the legislation will speak to what kind of provincial economy Nova Scotians want to create from their oil and natural gas.

"Sable gas has the potential to improve the lives of Nova Scotians. Developing the reserves has created thousands of jobs," he said. "This legislation will guarantee that Nova Scotians will take their place at the head of the line for the petrochemical jobs that will be created."

One private-sector operator, a Houston-based company, has already announced plans to build a petrochemical operation in the province. It would employ 1,500 people during construction and 250 once production begins. The company hopes to start construction in 2002.

"This legislation will help us create a new economy, and that is the legacy we want to create from Sable and the discoveries that will follow," said Mr. MacDonald.

NOTE: The following is intended for use by broadcast media.

The Nova Scotia government wants to regulate

exports of natural gas liquids from Sable energy fields.

It's introducing legislation to keep supplies of gas

liquids in the province . . . a move the government says

will help ensure a petrochemical industry is developed here.

Gas liquids include such products as ethane, butane

and propane.

Petroleum Directorate Minister Manning MacDonald

says the legislation will mean more jobs for Nova Scotians.

The bill will be similar to legislation already in

place in Alberta and British Columbia.

A Houston-based company hopes to begin construction

of a petrochemical plant in Nova Scotia in 2002.

Partners of the Sable Offshore Energy Project have

already guaranteed the province sufficient supplies for a

provincial industry.