Natural Gas

Natural gas has increasingly become one of the most coveted sources of energy in the world.  Natural gas is considered to be an extremely efficient source of energy that is a vital part to the world’s energy mix due to its properties that release relatively low levels of greenhouse gas emissions compared to other fossil fuels.

Atlantic Canada is a significant producer of natural gas, principally from production off the coast of Nova Scotia from the Sable Offshore Energy Project. In addition, natural gas is also being produced for market from the McCully natural gas field located near Sussex, New Brunswick.

Throughout our region, natural gas is transported to market through underground pipelines. In the International Northeast, Emera’s 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 and distributors.

Enbridge Gas New Brunswick serves as the province’s distributor of natural gas, serving over 7,500 institutional, commercial, industrial and residential customers. Enbridge Gas New Brunswick currently provides service to nine communities, including Dieppe, Fredericton, Moncton, Oromocto, Riverview, Sackville, Saint John, St. George, and St. Stephen.

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 – Corridor Resources

Corridor Resources 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") as a result of a farmin which provided that PCS would pay 100% of the costs of the well to earn a 50% working interest in four sections (3,561 acres).  On April 23, 2003, Corridor 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. Under the terms of a Joint Operating Agreement between Corridor and PCS, Corridor 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 sales gas.

On June 28, 2007, Corridor Resources commissioned a gas plant and pipeline to carry Corridor and PCS 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. As of March 2009, a total of 26 wells have been completed and placed on production through Corridor’s gas gathering system and gas plant. Corridor Resources 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. www.corridor.ca

Liquefied Natural Gas

Liquefied natural gas or 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 only four LNG receiving (regasification) terminals, all of which are in the United States. Canada’s first LNG regasification terminal, Canaport LNG, will open in Saint John in late 2008.

Canaport LNG is a partnership between Repsol YPF and Irving Oil. The state-of-the-art terminal will be 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 has created 750 construction jobs and approximately 55 permanent operating positions, creating opportunities within the local supply chain and serving as a pillar of the emerging energy cluster in the region. With a peak send-out capacity of one billion cubic feet of natural gas per day, Canaport represents a secure, long-term supply of clean-burning natural gas that is able to meet the growing demand of the International Northeast.

After regasification has taken place at Canaport, the natural gas will be transported to consumers through a pipeline. Brunswick Pipeline, an Emera Company, is a $465 million pipeline project connecting Canaport to an interconnection 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, which will be buried for its entire 145 km, is a vital asset for the region’s energy hub, ensuring the delivery of natural gas from Canaport 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.

Natural gas can also be transported as compressed natural gas (CNG). The transportation of CNG requires the use of pressure vessels which have been designed specifically for this purpose.

Floating Pipeline Company Inc. is a Halifax-based company providing safe and economical CNG transportation solutions. With a manufacturing facility in Saint John, New Brunswick, FPC Inc. is able to take advantage of the region’s deep-water port and geographic location to integrate its technology in ships, barges, rail cars, and shipping containers.