EXISTING NATURAL GAS NETWORK
Throughout our region, natural gas is transported to market through pipelines and compressed for over-the-road transportation. In the international Northeast, the Maritimes & Northeast Pipeline runs from the Goldboro Gas Plant in Nova Scotia, through New Brunswick and into Maine, New Hampshire, and Massachusetts. Natural gas is transported through pipeline to both large, industrial companies, distributors and to small businesses and residences.
Enbridge Gas New Brunswick serves as New Bruncwswick’s distributor of natural gas, serving over 7,500 institutional, commercial, industrial and residential customers.
To check the availability of natural gas in your region, please see Enbridge Gas New Brunswick’s availability map: http://naturalgasnb.com/availability.asp.
In Nova Scotia, natural gas is distributed by Heritage Gas and Strait Area Gas. Heritage services Halifax, Hants, Cumberland, Pictou and Colchester counties. Heritage Gas is a Nova Scotia-based distribution company owned by SaskEnergy Inc. To check whether Heritage distributes natural gas in your region, please see Heritage’s distribution map.
Strait Area Gas services the counties of Antigonish, Iverness, Richmond, and Guysborough (excluding Goldboro).
History of the McCully Field – Headwater Exploration Inc.
Headwater Exploration Inc. drilled the natural gas discovery well at the McCully Field, near Sussex New Brunswick in September 2000. The well was drilled in partnership with Potash Corporation of Saskatchewan ("PCS"). On April 23, 2003, Headwater Exploration Inc. and PCS commenced processing and transportation of natural gas from the McCully A-67 and P-66 wells for use at the PCS potash mill. Headwater Exploration Inc. and PCS jointly produce sufficient natural gas from the McCully A-67 and P-66 wells to meet a daily mill demand of approximately 2.0 mmscfpd of gas.
On June 28, 2007, Headwater Exploration Inc. commissioned a gas plant and pipeline to carry gas to the Maritimes and Northeast Pipeline system to distribute gas to New Brunswick and the NE United States. Thirty-five wells were drilled in the McCully Field by the end of 2008, all of which encountered natural gas. By March 2009, a total of 26 wells were completed and placed in production through Headwater Exploration Inc.’s gas gathering system and gas plant. Headwater Exploration Inc. is continuing to develop the McCully natural gas field with the drilling and completion of additional wells that significantly extend the producing area of the field in a northeasterly direction. In 2014 Headwater Exploration Inc. began a process of re-stimulating four existing wells to increase production. www.headwaterexp.com
Liquefied Natural Gas
Liquefied natural gas (LNG) is natural gas that has been converted to liquid form for ease of storage and transport. As a liquid, natural gas is less volatile and has a volume that is reduced by more than 600 times, making it easier and safer to transport. The ability to transport LNG by ocean vessel enables supplies of natural gas to be transported from production sites abroad to larger population centres.
In North America there are five LNG receiving (regasification) terminals; four in the United States and one in Canada. The first Canadian LNG regasification terminal is Canaport LNG, located in Saint John, NB, which opened in 2008.
Canaport LNG is a partnership between Repsol YPF and Irving Oil. The state-of-the-art terminal is a key addition to New Brunswick’s and the region’s energy future. The nearly $900 million project is the largest foreign direct investment in the region’s history. Construction of the terminal created 750 construction jobs and approximately 55 permanent operating positions. Its construction created opportunities within the local supply chain and served as a pillar of the emerging energy cluster in the region. With a peak capacity of one billion cubic feet of natural gas per day, Canaport LNG is part of the energy infrastructure of the region.
After regasification has taken place at Canaport, the natural gas is transported to consumers through a pipeline. Brunswick Pipeline, an Emera Company, is a $465 million pipeline connecting Canaport LNG to an interconnected pipeline system with the Maritimes & Northeast Pipeline transmission system at the Canada-US border near St. Stephen. The Maritimes & Northeast Pipeline runs from Goldboro, Nova Scotia through New Brunswick and the Northeastern United States to Massachusetts, where it connects with other major pipeline transmission systems. Brunswick Pipeline’s 145 km is a vital asset for the region’s energy cluster, ensuring the delivery of natural gas from Canaport LNG to markets in Canada and the American Northeast.
Transporting liquefied natural gas means that North American markets now have access to the formerly “stranded” natural gas reserves of countries like Trinidad & Tobago, Russia, Qatar, etc.
There has been several proposed projects in the region to export LNG to world markets. In Nova Scotia, three projects are contemplated, in New Brunswick there was a potential to add export capability to the Canaport LNG facility, and in Maine, Downeast LNG expressed interest in permitting for an export facility on the Passamaquoddy Bay.
Natural gas is also transported as compressed natural gas (CNG). The transportation of CNG requires the use of pressure vessels which have been designed specifically for this purpose.