Nova Scotia gas company aims to stabilize natural gas prices
Heritage Gas is taking steps to stabilize the price of natural gas for its customers in Nova Scotia.
Company officials told members of Halifax's Environment and Sustainability Committee that prices have been volatile the past few years because of dwindling offshore supplies, particularly in the winter.
"We have been thinking about this for some time," said John Hawkins, the vice president of procurement for Heritage Gas.
"Certainly we've known that Deep Panuke production hasn't lived up to what was anticipated."
Heritage Gas has decided to take a multi-pronged approach. They have pipeline agreements to get gas from Central and Western Canada, as well as the U.S. that will take effect over the next two years.
The company also has a contract with the proposed Alton Natural Gas Storage facility.
"About 40 per cent of our current demand can be stored at the Alton facility," Hawkins said.
"So, we'll be purchasing summer gas, putting it into storage and then withdrawing it in the wintertime when pricing is potentially quite high."
Heritage Gas told the Nova Scotia and Utility and Review Board that the Alton storage facility could save the company $17 million.
The project was supposed to be ready in 2019, but the project is on hold while the proponents consult with aboriginal groups.
"We're in a unique position in all of Atlantic Canada in that we have taken a step into both the storage facility and into multiple pipeline contracts," said Hawkins.
"We're the only company that has done that in Atlantic Canada."
