Province Welcomes First Offshore Gas

Premier John Hamm said the news that Sable gas is now flowing is a welcome reality for Nova Scotia.

"This new energy source is providing important new opportunities for our province," said Premier Hamm. "It's our energy, soon to be in our homes and our factories."

Earlier today, Maritimes and Northeast Pipelines announced that the gas started flowing through its lines on Dec. 31. Although the first Sable gas customers are in New England, Nova Scotia customers will be hooked up to the system later this year.

"Natural gas creates jobs in our province, contributes money to our economy, increases revenues for the government and broadens energy choices for us all," said Premier Hamm. "It has taken three decades to go from the first promise of significant offshore development to the reality of gas delivery today."

Petroleum Directorate Minister Gordon Balser also welcomed the beginnings of a new industry and said the real benefits will come over many years.

"This new industry is no panacea to solve all our problems", said Mr. Balser. "But it has the potential to become a cornerstone in building our new economy. The project is expected to last for 25 years or more. The lasting benefits will come when new industries are developed using the new energy source."

Establishment of the Sable gas infrastructure is attracting additional investment in the province, which Mr. Balser said is a vote of confidence in Nova Scotia.

"Next year exploration starts picking up, Sempra Gas starts building its distribution system, and planning for the next stage of development off Sable Island gets underway. All these events show a growing momentum for this new industry. Sable gas will be an important part of our economy."

The Petroleum Directorate estimates that the Sable gas project adds $500 million each year to Nova Scotia's $20 billion economy.