New LNG Regulations Emphasize Public Safety

New regulations mean that any liquified natural gas (LNG) plant in Nova Scotia will be operated in accordance with stringent safety standards.

Government has approved amendments to gas plant regulations. The changes allow the province to establish standards for the design, construction and operation of liquified natural gas terminals.

"In addition to requiring rigorous measures to protect public safety, these regulations provide certainty and clarity for LNG facility developers," said Energy Minister Cecil Clarke. "That's important for this emerging component of our energy sector."

The regulations establish a code of practice for LNG plants. The code is based on a Canadian Standards Association standard, but requires more conservative design and operation standards where government thinks it is warranted.

The Department of Energy received advice on the regulations from an independent consultant and released the draft regulations for public consultation.

The Nova Scotia Utility and Review Board will administer the regulations, recovering costs from LNG operators.

There are two proposals for liquified natural gas facilities in Nova Scotia. Anadarko Canada Limited is developing a facility in Bear Head, Richmond Co. Keltic Petrochemicals is proposing a combined LNG and petrochemical plant for Goldboro in Guysborough County.

The new regulations took effect on July 8.