Sempra Atlantic Awarded Gas Franchise
The government of Nova Scotia has approved the terms and conditions of the Nova Scotia Utility and Review Board's decision to award Sempra Atlantic Gas franchise rights to distribute natural gas across the province. That means natural gas from the offshore will be flowing into Nova Scotia homes and businesses next year.
"Today, Nova Scotia begins what will be a long, and, we expect, a beneficial relationship with Sempra," said Premier John Hamm. "Our role as government in this project, and in the development of all our offshore resources, is to ensure Nova Scotians derive every possible benefit from this new energy source and the opportunities it brings."
Government approval of the project, one of the largest infrastructure projects in provincial history, came after an extensive review of the Utility and Review Board's report, which was released on Nov. 16.
The board made its recommendations following a 49-day hearing process that included testimony from 68 witnesses and 7,000 pages of written testimony and evidence. The board had recommended the franchise rights be awarded to a single company with proven utility expertise and financial strength to ensure a safe and viable gas delivery system.
Sempra will begin construction of the system early next year and take seven years at a cost to the company of $1.1 billion. In its application for franchise rights, Sempra made significant commitments to benefit Nova Scotia. The company committed to the Utility and Review Board that 70 per cent of the construction jobs and 95 per cent of the permanent jobs would be filled by Nova Scotians. Construction activity employment will average about 900 people a year, peaking at nearly 1,800 people. The permanent workforce will be about 350 people. The Utility and Review Board and the provincial departments of Environment and Labour will be responsible for monitoring the safe construction, operation and maintenance of the natural gas system.
Sempra Atlantic Gas is a subsidiary of California-based Sempra Energy, the largest natural gas distribution company in North America.
NOTE TO EDITORS: A backgrounder on government approval of the Utility and Review Board's decision to award a gas distribution franchise to Sempra Atlantic Gas is available; please call 902- 424-4492 or e-mail Release@gov.ns.ca for a copy.