Gas Storage Caverns Project Begins

[Haliguy]

Storage well drilling to begin near Truro next month

By JUDY MYRDEN Business Reporter
Tue. May 27 - 5:45 AM

A Calgary energy company and its partners will start drilling its first onshore natural gas storage well at a proposed facility near Truro next month.

The board of directors of Alton Natural Gas Storage L.P., owned by Landis Energy Corp. of Calgary, and Calgary-based Fort Chicago Energy Partners approved May 15 the drilling and completion of the first storage well.

It is anticipated the drilling will begin in June, pending permitting and confirmation of rig availability, the company stated in a release.

"We are very pleased with the industrial permitting process and the support for the storage project at all levels of the Nova Scotia government," said David Birkett, Landis Energy president. "We had an excellent turnout at our recent information session held in . . . Brookfield and greatly appreciated all of the local support for the storage project."

The storage system would pipe in river water to hollow out the caves. The company would treat the water to reduce its salinity and then discharge the briny water back into the river.

Alton has also recently completed clearing the cavern site and the water pipeline right-of-way and has stated acquiring the necessary easement for the same right-of-way. Also engineering and pre-construction surveying has been completed, the company stated.

A few months ago Alton announced a pipeline proposal that would originate southeast of Truro and ship gas to Quebec and into the northeastern U.S.

The Atlantic Connector Gas Pipeline would have an initial capacity of about 1.2 billion cubic feet per day.

It would originate near Alton, Colchester County, stretch through New Brunswick and then to Quebec to hook into the national gas transmission grid.

Company documents say the Alton site, about five kilometres from the Shubenacadie River, has the potential to serve as a Nova Scotia gas storage and distribution centre and as a larger storage hub for Eastern Canada and the U.S.

Company officials were unavailable for comment Monday.