Natural Gas: Sable Offshore Energy Project
The Sable Offshore Energy Project (SOEP) encompasses one of the largest known natural gas deposits remaining to be developed in North America.
The $3 billion project involves the development of six major natural gas fields that lie 10 to 40 kilometres (6 to 25) miles north of the edge of the Scotian Shelf.
SOEP Tier I
Phase one of the project was completed at a cost about $2 billion encompassing the development costs of the Thebaud, North Triumph and Venture gas fields, subsea pipeline, gas plant at Goldboro, natural gas liquids pipeline to Point Tupper and the fractionation plant at Point Tupper. First sales gas flowed on December 31, 1999.
SOEP Tier II
Work on the $1 billion second phase of the project is essentially complete. It involved development of the Phase II fields – Alma, South Venture and Glenelg. Glenelg development is now on hold. The Alma field is under production with the Glenelg, and South Venture gas fields to follow.
SOEP is forecast to produce natural gas until the latter half of the next decade.
Production is currently ~500 mmcfd of market-quality sales gas from onshore processing facilities in eastern Nova Scotia.
SOEP Gas Markets
Markets for the natural gas include Nova Scotia, New Brunswick, and New England. The Sable fields are also producing natural gas liquids, which are being processed at a liquids handling facility in the Point Tupper area.
Major Nova Scotia natural gas users include Nova Scotia Power, StoraEnso and the SOEP gas fractionation plant at Point Tupper.
More information on SOEP Gas markets is avilable in the Background Paper produced by the Department of Energy for the National Energy Board hearings in Saint John New Brunswick in July 2002.
Benefits from SOEP
SOEP means many benefits for Nova Scotians: a new industry, increased demand for local supplies and services, jobs for Nova Scotians, access to a clean, economical form of energy, royalty revenue for the province, and infrastructure for future projects.
The latest report on economic benefits from the Sable Offshore Energy Project is available in the Resources section.
SOEP Shareholders
The shareholders of the Sable Project are ExxonMobil Canada Limited (50.8%), Shell Canada Limited (31.3%), Imperial Oil Limited (9.0%), Pengrowth (8.4%) and Moshbacher Operating Limited (0.5%).
The associated pipeline project is the Maritimes and Northeast Pipeline Project (M&NP).
Maritimes & Northeast Pipeline is 77.53% owned by Spectra Energy, 12.92 percent by Emera Inc., and 9.55% by ExxonMobil Canada.
SOEP Facilities
SOEP includes both offshore and onshore facilities.
The offshore side includes a central processing facility near Sable Island which will eventually be connected to six production platforms (three are currently connected and producing gas - the fourth field is Alma).
A subsea pipeline is transporting the gas to a processing plant in Goldboro, Guysborough County.
This is where the onshore portion of the project begins. At the gas plant, natural gas liquids are separated from the natural gas.
The liquids travel by underground pipeline to a liquids processing plant in Point Tupper. The sales gas travels by M&NP pipeline from Goldboro to markets in Nova Scotia, New Brunswick, and New England.
For more information on the Sable Offshore Energy Project, visit ExxonMobil Sable Offshore Energy Project.