New Program to Develop Local Fuel, Lower Power Rates

CANADA, December 22 - A new program will help understand the potential of Nova Scotia’s onshore natural gas deposits and help produce natural gas here in the province.

“Natural gas is used to heat many homes and apartments, and we’ve seen as much as 20 per cent of Nova Scotia Power’s output fuelled by natural gas,” said Premier Tim Houston. “Right now, we are forced to import all of our natural gas and ship it through the U.S. We should not pay to transport it when it is a resource we have here at home.”

The Province is engaging Dalhousie University to oversee the Subsurface Energy Research and Development Investment Program. The university will lead research efforts to better understand the nature and location of the resource and to track and develop guidelines to ensure exploration and development are done responsibly.

The $30-million program will help kick-start the province’s onshore natural gas industry after a decade of inaction and inactivity, bringing jobs and investment to the province.

“Previous governments made the decision to shut down our industry and import fuel. That contributed to driving up electricity costs while sending jobs elsewhere. That makes no sense,” said Premier Houston. “Developing our own resources to fuel our own energy needs will help combat the rising cost of heat and power and create good-paying jobs here at home. That’s why we are working with Dalhousie to understand how to do this safely.”

First steps include Dalhousie establishing an oversight committee of people with experience in energy development, including representation from academia, the public, the Department of Energy, First Nations and the energy industry. The university will also lead communication with the public before research starts and manage ongoing stakeholder engagement.

The university will set qualification criteria for companies and issue an open call for project proposals. After applications are evaluated, the Province will negotiate agreements with successful proponents to determine the amount of provincial investment. Proponents must secure all applicable permits and approvals before exploration or production begins.

The Province can hold equity in successful drilling ventures or earn a share of profits of production in a number of ways, such as royalties. Nova Scotians will receive economic benefits, and each project will produce a return in both jobs created and new source government revenue.

Any provincial revenue earned will be partially, but disproportionately, reinvested in the surrounding local municipalities based on proximity.

Quotes:

“Dalhousie University is pleased to support the Government of Nova Scotia by providing administrative capacity, faculty and research expertise, and community connection for the Subsurface Energy Research and Development Investment Program. We are committed to being a strategic partner in promoting the economic development and social vitality of Nova Scotia, creating and fostering growth opportunities through impactful and collaborative research, scholarship and partnerships.”
— Graham Gagnon, acting Vice-President Research and Innovation, Dalhousie University

“The Canadian Association of Petroleum Producers welcomes the launch of this new program to support the potential development of Nova Scotia’s onshore natural gas projects while ensuring environmental stewardship, transparent and collaborative processes, and clear regulatory pathways. Advancing the exploration and potential development of the province’s abundant natural resources can attract new investment, create new jobs and generate new revenues for the Province and municipalities to support funding for schools, hospitals and social programs that Nova Scotians rely on.”
— Lisa Baiton, President and CEO, Canadian Association of Petroleum Producers

“Eastward Energy supports Nova Scotia’s ongoing efforts to responsibly harness natural gas production. Locally produced natural gas will support communities, attract investment and drive prosperity across the region.”
— John Hawkins, President, Eastward Energy

Quick Facts:

• Dalhousie will submit a final report to the Province by December 31, 2026, with published research papers to follow
• exploratory wells in the program that do not produce natural gas could be assessed for potential geothermal energy and carbon capture and storage research and development
• Nova Scotia has an estimated seven trillion cubic feet of natural gas underground; that is about three times the amount of gas off Sable Island and enough to meet Nova Scotia’s needs for 200 years
• the Province is also aiming to further develop offshore natural gas; a call for bids is underway for 13 parcels on the Scotian Shelf and slope

Additional Resources:

More information about onshore natural gas: https://novascotia.ca/onshore-natural-gas/

Nova Scotia Onshore Petroleum Atlas: https://energy.novascotia.ca/onshore-atlas-version-1-2017

News release – Call for Bids Issued for Offshore Natural Gas: https://news.novascotia.ca/en/2025/07/07/call-bids-issued-offshore-natural-gas