Deep Panuke approved to start pumping

HALIFAX — The offshore natural gas platform Deep Panuke received the last approval required to begin full production Friday.

The Canada-Nova Scotia Offshore Petroleum Board released a statement saying they had completed “an extensive readiness for operation review.”

A spokesperson from Deep Panuke’s owner and operator, Encana, says this approval is an important step towards production. However, natural gas won’t be pumped for at least several weeks.

The platform is located 175 kilometres off Nova Scotia’s shore, connected to the mainland via a pipeline. Four wells penetrate the ocean floor and feed a mixture of gases back to the platform.

Each of those wells will now be turned on individually and tested. When all four are operational, the platform will begin the process to purify and clean the gas. Hydrogen sulfide and carbon dioxide will be removed, leaving pure natural gas ready to be sent through the subsea pipeline to market.

The Nova Scotia government benefits from offshore exploits thanks to royalties. The initial royalty will be two per cent of Encana’s gross revenue. That royalty could eventually climb to as high as 35 per cent of net revenue, according to the profitability of the site.

Minister of Energy for Nova Scotia, Charlie Parker, provided a written statement to Global News, saying: “Today’s news regarding Deep Panuke’s startup is good news for Nova Scotia. The Deep Panuke project will result in additional natural gas going to market, which should help alleviate price concerns during peak consumption times in the winter.”

“The production and distribution of natural gas continues to be a priority for the province now and in the future, as it is an important part of the province’s energy plan leading to a cleaner, more diverse energy mix.”

Deep Panuke was initially approved in 2007. A number of equipment setbacks have put it about two years behind schedule.

The Nova Scotia government estimates there is 632 billion cubic feet of natural gas beneath the Deep Panuke site, enough to last roughly 13 years of production.