Energy company eyes N.S. salt caverns

An Alberta company wants to carve out salt domes in central Nova Scotiato store large amounts of natural gas.

Calgary-based Landis Energy Corp. proposes to develop up to 20 large caverns in theAlton area and link them to the Maritimes and Northeast Pipeline, which runs from Nova Scotia to the northeastern United States.

The salt deposit underAlton is half a kilometre deep. It's as strong as concrete, making it ideal for storing compressed natural gas.

With salt caverns, operating and maintenance costs tend to be lower compared toother storage means, the company says, noting there are noundergroundfacilities along the pipeline north of Boston.

Landis Energy officials arenot commentingon theplan, but Heritage Gas, a potential customer, is excited about the proposal.

"This is another important piece for developing a natural gas industry on the East Coast," said Heritage Gas president Ray Ritcey.

However,Larry Hughes, an energy analyst at Dalhousie University, said Nova Scotians would not benefit greatlyfrom the project because the province's gas infrastructure is set up for export.

"In terms of natural gas for Nova Scotians, there will be very little," Hughes said. "It's really intended for New England."

The biggest potential environmental impact is on the Shubenacadie River. Water would be drawn from the river to hollow out the salt caverns, and the salty wastewater would be dumped back into the river.

Landis Energyproposes tosynchronize the wastewater dumping to the high tides to minimize the effect on fish and other wildlife.

Nova Scotia's Department of Environment is considering whether to approve the proposal. It's up for public review over the next three weeks.

The companyhopes tostart with four caverns, with constructionbeginning this fall and continuing for up to two years. Another 10 to 15 would be developed later, depending on market demand.