Natural gas prices to shoot up once Nova Scotia production ends
The CEO of Energy Atlantica is expecting an increase of 30 to 40 per cent
A Halifax-based natural gas analyst says natural gas prices will rise once the supply from two local sources dries up in the coming years.
It was recently announced that Deep Panuke will yield at least 50 per cent less gas than originally thought. Encana says the problem has to do with too much water seeping into the gas reserve which makes it more expensive to extract.
Todd McDonald, the CEO of Energy Atlantica, says that gas has been produced locally from Deep Panuke and Sable Island for two and 15 years, respectively.
He says the rising prices will be a function of supply and demand economics.
“Both of those fields are now going to be running out in the next two to three years. Once all of that gas is gone, you have no choice but to import from the United States [to meet] all of your needs,” said McDonald.
He expects the increase will amount to about 30 to 40 per cent.