News Release Archive
PREMIER--PROVINCE TO TAKE STRONG STAND ON ENERGY ----------------------------------------------------------------- Nova Scotia must receive maximum royalties and employment benefits if natural gas is to be developed off its coast, Premier John Savage said today. The premier will stress those points should the issue of energy, including the distribution of natural gas in Canada, be discussed at next week's annual premiers' conference in Alberta. "Nova Scotia is not prepared to accept a situation where the province would receive less than acceptable royalties or the jobs normally associated with such a massive project. We will also not tolerate any interference that might delay the startup of offshore natural gas production." A consortium led by Mobil and Shell has filed a development plan for a $2 billion offshore gas project expected to produce 400 million cubic feet of gas a day. A further $1 billion will be needed to build a pipeline to move the gas to markets in Canada and the U.S. "Market forces and regulatory agencies such as the National Energy Board will ultimately decide on issues such as gas transportation routes and gas prices. Nova Scotia's position is that this province receives maximum benefits. If we don't, then the gas might as well stay in the ground," he said. Nova Scotia is counting on the hundreds of jobs associated with the offshore project and pipeline development. Mobil and its partners are currently engaged in a pre-engineering program and $25 million seismic project. The consortium expects to make a final decision on whether the project goes ahead in 1997 with the first gas coming ashore at the turn of the century. -30- Contact: David Harrigan 902-424-6600 trp August 14, 1996 - 2:35 p.m.