News Release Archive

Montreal-based Gaz Metropolitain is attempting to exploit the
national unity issue in order to grab a bigger slice of the
Canadian gas distribution business, Premier John Savage said

The Montreal company is insisting that Nova Scotia's Sable gas be
pumped by pipeline into Quebec. Under the existing Sable Offshore
Energy project, gas would move by pipeline through Nova Scotia
and New Brunswick and into the U.S.

"Gaz Metropolitain would like this to become a Quebec issue. But
what the company really wants to do is to get a monopoly on gas
distribution from both Western Canada and the East Coast. The
company doesn't mind exploiting the unity issue in order to get a
competitive advantage. I'm fed up with businesses in central and
western Canada like Gaz Metropolitain who want to exploit Nova
Scotia's resources for their own selfish gain," the premier said.

Premier Savage said his government will do everything within its
power to ensure Nova Scotia receives maximum benefit from any
offshore gas development.

"Offshore gas is too important to Nova Scotia's future to let it
become politicized by private interests. As a government we will
stand up and fight for what is ours."

The premier said the Nova Scotia government is prepared to
intervene before various regulatory board in order to protect the
province's interests.

"To suggest, as Gaz Metropolitain does, that gas must first serve
Canadian markets is deliberately misleading. Traditionally,
Canadian energy has been exported."

Premier Savage said economics will decide when gas is developed
offshore and where it is sold. In order for any project to go
ahead, the oil and gas companies must be able to receive a fair
rate of return for their investment and Nova Scotians their fair
share of royalties.


Contact: David Harrigan  902-424-6600

trp                      June 28, 1996 - 10:58 a.m.