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Natural Gas Pricing and Supply Trends

Common Question #1:  

“Is the world seeing a global shortage of natural gas?” 

Answer: 

No. While the natural gas reserves offshore in Nova Scotia have been decommissioned, North America still has abundant supplies of natural gas – enough to meet North America’s needs for over 100 years. Natural gas continues to be used by millions of Canadians every day, and is also a major export opportunity to Asian and European markets. 

Common Question #2:  

“Are there any natural gas supply issues for Nova Scotia?” 

Answer:  

No. Eastward Energy anticipated the decommissioning of natural gas supply from offshore Nova Scotia and entered into transportation contracts to ensure customers continue to have access to reliable natural gas supply from lower volatility/stable priced North American supply basins. 

Common Question #3:  

“Which long-term transportation contracts bring reliable and stable natural gas to Nova Scotia?” 

Answer:  

  • Portland XPress (PXP) expansion project which transports natural gas from the Dawn natural gas storage hub in southern, Ontario. 
  • Atlantic Bridge expansion project which transports natural gas from a supply point in New York State.   

Common Question #4:  

“Will natural gas prices go up or go down?” 

Answer:  

Natural gas is a commodity, and so, like any commodity, it will naturally experience price increases and decreases, especially from season to season. That said, the long-term transportation contracts that connect the Maritimes to lower and more stable priced regions enable Eastward Energy to purchase natural gas for its customers and transport it to Nova Scotia. These contracts will provide greater stability in prices for many years to come. 

Customers are benefiting from the trend of decreasing natural gas commodity costs in the Gas Cost Recovery Rate (GCRR) on their bills, as well as less volatility by reducing exposure to the highly sensitive supply and demand markets. 

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