NGI The Weekly Gas Market Report
Nova Scotia Power Inc. completed the purchase of a 12.5%interest in the Maritimes & Northeast Pipeline (M&NP)project. This purchase represents a total investment of about $200million.
This pipeline is being constructed to carry Sable offshore gasto markets in the Maritimes and will extend through thenortheastern United States, as far as Dracut, MA. In-service isexpected by the end of 1999. Nova Scotia Power bought its share inMaritimes from Mobil Oil, which had a 25% interest in the pipelineand sold have to Nova Scotia Power. The company is the largestsingle Nova Scotia purchaser of gas from the Sable offshore fieldat 61.5 MMcf/d, a spokesman said.
“We are proud to be the first Nova Scotian company to play asignificant role in the Sable project infrastructure by owning aportion of the transmission pipeline,” said David Mann, CEO. “Thispurchase is an important step in our company’s diversification intoa regional energy company and our first major investment outside ofNova Scotia.”
The M&NP pipeline is expected to cost approximately C$1.7billion. Partners in the project include Westcoast Energy Inc.,Duke Energy and Mobil Oil.
Nova Scotia Power is the principal supplier of electricity inNova Scotia, providing reliable energy and related services tonearly 430,000 customers province-wide. With $2.8 billion inassets, the company’s operations include more than 95% of thegeneration, transmission and distribution of electric powerthroughout Nova Scotia. Nova Scotia Power had 1997 revenues of $750million.
Joe Fisher, Houston
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