Atlantic Canada, the last large region of North America entirelyunserved by natural gas, has moved within sight of joining themainstream. Maritimes &amp Northeast Pipeline, keeping a promisethat accompanied its development of a new export route to NewEngland, filed applications with the National Energy Board to hookup Atlantic Canada’s two biggest cities to natural gas from theSable Offshore Energy Project.

M&ampNE seeks construction of a C$74-million (US$53-million)”lateral” connection to Halifax, Nova Scotia, and a C$91-million(US$65-million) link to Saint John, New Brunswick. Requests forservice to date total 60 MMcf/d in Halifax and 130.6 MMcf/d inSaint John. Demand for service is forecast to grow. Both Canadianbranch lines are scheduled to go into service Nov. 1, 1999, or atthe same time as the export route from SOEP in the Sable Islandarea offshore of Nova Scotia.

At the same time, the Canada-Nova Scotia Offshore PetroleumBoard confirmed that interest in expanding gas development aroundSable Island is on the rise. SOEP’s participants, including seniorpartner Mobil Canada, have repeatedly predicted that it will turnout to be a “seed” project for a steadily expanding Canadianmaritime gas supply sector. The board, responding to industryexpressions of interest, posted for sale 810,896 acres (1,267square miles) of drilling leases northeast of the initial SOEPproduction area.

Gordon Jaremko, Calgary

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