Deep Panuke gets qualified go-ahead

The ponderous progress towards developing Nova Scotia’s offshore Deep Panuke natural gas field gained “general support” from regulators, but still has some blanks to fill in before it will get a final go-ahead.

In a 72-page report, Linda Garber, an independent commissioner appointed by the Canada-Nova Scotia Offshore Petroleum Board, recommended that the board approve EnCana’s development plan to bring reserves of 632 billion cubic feet into production in 2010.

A verdict is expected soon from Kenneth Bateman, a commissioner appointed by the National Energy Board, who sat alongside Garber during March hearings.

Final decision due this summer

Although Garber accepted the basic plans submitted by EnCana, she was not happy with a deal worked out between the Nova Scotia government and EnCana a year ago to require 850,000 of the 1.35 million hours of work to be credited as “Nova Scotia person hours.”

She questioned whether those person hours would actually apply to residents of Nova Scotia.

EnCana is reviewing the findings before making any comment.

It has indicated a preference for building its own 110 mile underwater pipeline to shore to serve markets in Atlantic Canada and the U.S. Northeast.

But there is still a possibility of tying in with the existing Sable pipeline, which is operating far below capacity of 530 million cubic feet per day. Shipments to New England markets last year averaged about 345 million cubic feet per day.

—Gary Park