Two incoming Spectra Energy pipeline projects will help reduce the natural gas price spike for residents in the Maritimes.
One pipeline is called the Algonquin Incremental Market (AIM) Project, which is currently under construction and should be in service next month. The second pipeline is called the Atlantic Bridge, which is expected to be online by next fall.
The pipelines are being built to increase capacity by bringing U.S. shale gas to the Canadian northeast region to solve the natural gas price spike due to lack of pipeline infrastructure and declines in gas supply from Nova Scotia offshore facilities.
The Maritimes has consistently seen the highest prices for natural gas in North America the last few years, with charges up to C$52 per gigajoule in February of 2014.
Although neither pipeline is currently operational, both are already helping reduce natural gas prices for residents in the Canadian northeast. Natural gas consumers in New Brunswick and Nova Scotia will be paying significantly less this winter than they were last year, and prices are expected to fall even more in the years to come.
Both Spectra Energy pipelines will bring a total of 500,000 gigajoules per day of gas into the New England market, more than doubling the current production of Nova Scotia’s offshore.