News release

Industries to Benefit from Trucked Compressed Natural Gas Delivery

Large energy users in Nova Scotia, including hospitals and universities, will soon be able to access the energy savings of trucked compressed natural gas.

The province announced today, July 11, it has accepted all recommendations from an independent review of how compressed natural gas should be delivered in the province. The report concludes that delivery to customers without pipeline access should be treated the same as fuel oil and propane delivery.

"Trucking compressed natural gas in a competitive marketplace could save our industrial sector tens of millions of dollars a year in energy costs," said Energy Minister Charlie Parker. "This makes our companies more competitive and saves our universities and hospitals money that can be spent in the classroom or on patient care."

The province hired William Lahey to review the options for compressed natural gas delivery for suppliers and customers.

The report recommends a hybrid approach so single large-energy customers not on the pipeline can access compressed natural gas without undermining the province's regulated pipeline distribution. Suppliers will not be allowed to distribute where customers can connect to the natural gas pipeline to protect its viability.

"I believe the market is the best option for determining the conditions under which compressed natural gas will be a realistic fuel option for large-volume energy consumers who do not otherwise have access to natural gas," said Mr. Lahey. "The conclusions balance the interests of these businesses and institutions with the interests of those who will only have access to natural gas if we have a strong network of distribution pipelines that reach as many homes, businesses and communities as possible."

The delivery will be reviewed in five years, as recommended in the report.

All rules and regulations that apply to transporting dangerous materials apply to compressed natural gas. The significant cost and energy load needed means it is not viable for residential customers.

To view the report and recommendations, visit www.gov.ns.ca/energy/ .

FOR BROADCAST USE:

Large energy users in Nova Scotia such as hospitals and Universities will soon be able to access the energy savings of trucked compressed natural gas.

The province announced today (July 11th) it has accepted all recommendations from an independent review of how compressed natural gas should be delivered in the province. The report concludes that delivery to customers without pipeline access should be treated the same as fuel oil and propane delivery.

Energy Minister Charlie Parker says it could save industry tens of millions of dollars a year in energy costs, making companies more competitive and saving universities and hospitals money that can be spent in the classroom or on patient care.

The delivery will be reviewed in five years.

To view the report and recommendations, visit w-w-w dot gov dot n-s dot c-a slash energy.

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Media Contact:

Tracy Barron
Department of Energy 902-424-1757 E-mail: