A new report by Ziff Energy Group predicts that Offshore Nova Scotia will play a “dominant role” in supplying the U.S. Northeast and the Canadian Maritime Provinces with gas. The report forecasts Scotian production to grow from its current 500 MMcf/d to more than 1.2 Bcf/d by 2006 and to more than 2 Bcf/d by 2010.

In September 2001, the Canadian Gas Potential Committee reported a resource estimate of 18.5 Tcf for the Scotian shelf, but Ziff considers this estimate to be conservative, noting that several major exploration and production companies have ramped up their exploration and production efforts.

However, an 80% capacity expansion needed to move gas south via the Maritimes & Northeast Pipeline has been challenged by the New Brunswick government’s argument that dedication of Nova Scotia gas to the northeastern U.S. will prevent eastern Canadian markets from evolving.