Increased storage needed for natural gas in Nova Scotia: provincial study

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The Canadian Press

HALIFAX — A study prepared for Nova Scotia’s provincial government says natural gas customers in the province are forced to buy the fuel from the New England market in the coldest months, driving up the price.

The study by ICF Consulting Canada Inc. says more natural gas storage is needed in the province to help moderate the price hikes in the winter.

Last winter, dwindling natural gas reserves coupled with price fluctuations prompted the province to launch the study on how it can secure a more stable supply.

It examined market demand, infrastructure needs and the flow of natural gas in the Maritimes and Northeast Pipeline, which is primarily used to ship gas to the northeastern U.S. Natural gas prices in the province tripled in December, driving up costs for large industrial-scale users such as hospitals and universities.

Energy Minister Charlie Parker has said the price hikes were driven by a number of factors including market price volatility and a shrinking supply with the gradual winding down of ExxonMobil’s Sable offshore project, which began production in 1999.

Another factor contributing to the supply problem is the ongoing delay in the startup of Calgary-based EnCana’s (TSX:ECA) Deep Panuke project.

Organizations: ICF Consulting Canada, Maritimes and Northeast Pipeline, EnCana TSX

Geographic location: Nova Scotia

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Recent comments

  • GAs Tripled in price in December
    August 02, 2013 - 08:58

    ....Cough consuming politicians and clients (us)....Wake up and smell the emissions!! of fossil fuels will never mitigate the high cost fluctuations (commodity trading loves good and bad news)......In fact, .I suspect we will see the price of oil take more sharp increases, over the next year or two due to growth in China and the looming recovery in the US -- meaning we could see the "pump price " move in the range of a $1.50 lows to 2.00 highs .....the price of oil and gas is the single biggest input cost to all our products and services....WE DO HAVE A CHOICE....with Wind and solar you pay the price up front...BUT what a good deal !!! will get power for a stable price for the next 25 years (along with "storage battery technology for that clean power" and hydrogen production and fuel cells) we get rid of that "SECOND HAND SMOKE from car and building exhaust pipes".....pollution is Bad....oil and gas is Bad....moneytraders who speculate on the price of oil and gas are Bad...and so are the politicians and media who fail to see the GOOD direction we must take to protect us over the coming decades and generations.......shortsighted are Charlie Parker, and the "hot air consultants".... Gas is not the answer -- clean technology is -- energy without emissions instead of oil and gas smoke polluting the air....clean technology offers real "viable " solutions to mitigate those real threats over the coming decades! ....or look forward to periodic tripling of prices....should be an outcry against our collective stupidity to take that price manipulations without a fuss!!