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September 14, 2007

National Energy Board approves Encana’s plan for offshore pipeline off Nova Scotia coast

Underwater pipeline to be built off the coast of Nova Scotia, in partnership with Calgary’s EnCana Corporation.

The National Energy Board (NEB, the Board) has approved an application by Calgary’s EnCana Corporation to build a 176-kilometre underwater pipeline off the coast of Nova Scotia.

The $234 million Deep Panuke Pipeline will connect the proposed Deep Panuke Offshore Gas Development Project with markets in the Maritimes and Northeastern United States.

The pipeline will run from an offshore production unit near Sable Island to Goldboro, NS and will ship up to 300 million cubic feet of natural gas daily when production begins in 2010.

The pipeline is expected to provide direct economic and employment benefits to the Maritimes and act as an incentive for further exploration along the Nova Scotia shore.

According to the NEB’s Reasons for Decision, EnCana estimates that the “construction phase expenditures for the Deep Panuke Offshore Gas Development Project. . .are estimated at $700 million (2006 dollars) over four years ending in 2010, including estimated capital costs of $234 million for the Deep Panuke Pipeline.“

EnCana has committed to providing at least 623,000 person-hours for engineering, procurement and management activities for the pipeline. Receiving, handling, double jointing, coating, and shipping activities related to the pipeline project would also happen in Nova Scotia and would provide at least 37,000 person-hours.

NEB has posted the full text of its Reasons for Decision on the home page of its web site.

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