$14 Million Allocated for Use of Natural Gas

The province has allocated $14 million from the Gas Market Development Fund to help individual Nova Scotians, small businesses and institutions use natural gas. The $20-million fund is financed by gas producers in Nova Scotia.

"Our goal is to see as many Nova Scotians as possible using their own natural resources as soon as possible," said Energy Minister Gordon Balser. "The province has a leadership role in this regard and this is one step toward meeting the goal."

The provincial Utility and Review Board is hearing applications for natural gas distribution franchises within Nova Scotia.

Applicants have requested information from the province on how the fund is to be used. The Department of Energy responded today, Oct. 10, in a letter to applicants that was filed with the board. The letter provides general direction on the use of the fund.

The remaining $6 million will be used to extend the pipeline system beyond any franchise area approved by the board and for customers already using natural gas in Nova Scotia.

"It's important that we have the opportunity to help natural gas reach areas that may fall outside any franchise area," said Mr. Balser. "There may be instances where financially marginal opportunities are workable if there is a little bit of help available."

Details on distribution of the Gas Market Development Fund will be released after discussions with a successful applicant or applicants.

The Gas Market Development Fund was established to help develop natural gas markets by reducing the cost of natural gas consumption in Nova Scotia. The province administers the fund.