Province Declines to Invest in Deep Panuke Pipeline

After completing an in-depth financial analysis and receiving advice from an independent consultant, the government of Nova Scotia is turning down an offer to invest in ownership of the proposed Deep Panuke pipeline.

"Based on our in-depth analysis, we believe it's not in the province's best interest to participate in the Deep Panuke pipeline," said Bill Dooks, Minister of Energy.

The pipeline is estimated to cost about $233 million dollars, plus or minus 25 per cent.

"We will get our best value by going with less risk and more royalties, as signified by our Offshore Strategic Energy Agreement," said Mr. Dooks. "At this time, we feel Nova Scotians would rather we invest their money in things like education and medicine."

The EnCana Corporation offered the province the opportunity to participate in the ownership of its proposed offshore pipeline on commercial terms, as required under the Accord Act.

Turning down the offer to invest in ownership of this pipeline does not preclude government from participating in pipeline ownership with future projects.