NEB fully approves Sable Island gas project

Canada's National Energy Board has given full approval to a $3 billion (Canadian) project to produce natural gas from Sable Island off Nova Scotia and transport that gas to New England and Canadian markets via the Maritimes & Northeast Line (MN&E) pipeline. Meantime, two rival pipeline projects are appealing an earlier, joint federal-provincial government approval of the MNE project. The Sable Offshore Energy Project (SOEP) earlier received approval from the joint federal-provincial review

Dec. 15, 1997

2 min read

Meantime, two rival pipeline projects are appealing an earlier, joint federal-provincial government approval of the MNE project.

Sable Island project

The Sable Offshore Energy Project (SOEP) earlier received approval from the joint federal-provincial review panel.

It now requires cabinet approval from Ottawa and from the Canada Nova Scotia Offshore Petroleum Board.

SOEP official Ken Miller said the group welcomes the approvals, adding that it will keep the project on track to produce and ship gas by November 1999.

Project backers are Mobil Oil Canada Properties Ltd., Shell Canada Ltd., Imperial Oil Resources Ltd., and Nova Scotia Resources Ltd.

Sable would produce 460 MMcfd of gas and 20,000 b/d of natural gas liquids.

The Nova Scotia government said it wants SOEP to maximize local benefits and to establish a viable petrochemical industry in the province.

Rivals appeal

Two rival pipeline projects, North Atlantic Pipeline Partners (NAPP) and the TransMaritime Pipeline Project (TMPP), are appealing the Joint Review Panel approval of MNE to the Federal Court of Canada.

The MNE line bypasses Quebec en route to New England and is sponsored by Mobil Oil Canada Ltd., Westcoast Energy Inc., and PanEnergy Corp.

TMPP said its project provides greater and more affordable access to Sable gas than any other for customers in Nova Scotia, New Brunswick, Quebec, and Ontario. It said the TMPP project should be fully reviewed before any final decision by Ottawa on a pipeline system. TMPP says its project was not fully assessed at the hearings.

TMPP is sponsored by Gaz Metropolitain Inc., TransCanada PipeLines Ltd., and Consumers Gas, a unit of IPL Energy Inc.

NAPP said its appeal is based on the review panel's decision not to consider its proposal. The group filed an application with the NEB Oct. 10 for an offshore gas line from the Grand Banks to Nova Scotia and New England.