Deep Panuke offshore natural gas project in Nova Scotia hits peak production

HALIFAX – Encana Corp. (TSX:ECA) says its Deep Panuke offshore project in Nova Scotia is now achieving peak production of 300 million cubic feet of natural gas daily.

The production marks a milestone for the project, which has been plagued by delays since receiving regulatory approval in 2007.

It was initially supposed to go into production by late 2010.

Encana also announced that is has an agreement for the purchase of all production from the platform, with pricing tied to the U.S. northeast market.

Natural gas from Deep Panuke, which is located about 250 kilometres southeast of Halifax on the Scotian Shelf, is processed offshore and transported via subsea pipeline to Goldboro, N.S., where it connects with the Maritimes and Northeast Pipeline.

The project is expected to have a production life of 13 years.