Sable offshore project not necessarily dead: Finance minister
Posted Jul 9, 2010 12:43:55 PM.
This article is more than 5 years old.
ExxonMobil’s decision this week not to extend its Sable Offshore Energy project may not be the nail in the coffin for the project according to Nova Scotia’s finance minister.
Graham Steele admits the announcement is a blow, but is optimistic it shouldn’t impact the province’s ability to balance the budget. “Strictly in terms of the province’s finances, it doesn’t change anything. It’s just we’re always hoping for more development than less.”
According to Exxon, current market conditions are behind the decision not to expand the Sable gas project with natural gas prices at an all time low.
Energy Minister Bill Estabrooks says the decision, “is a big blow to the offshore and it’s a big blow to some of the budgetary decisions we’re going to have to make over the next number of months and years.”
However both Estabrooks and Steele are hopeful natural gas prices could turn around down the road and spur further development of the Sable field.
The Sable Offshore Energy project currently adds about 200 million dollars per year to Nova Scotia’s economy.
The current Sable gas project has 10 years of its life left and the Deep Panuke gas field is expected to come online next year.
