Maritimes & Northeast Pipeline (M&NP) operates a 1051-kilometer underground gas transmission pipeline through the Maritimes and Northeast United States. The main pipeline and the lateral pipelines are designed to transport Sable offshore natural gas to markets in Nova Scotia, New Brunswick and New England.  M&NP interconnects with the existing North American pipeline grid at Dracut, Massachusetts.

The Sable gas projects have brought a whole new industry to Atlantic Canada, including the potential for future natural gas exploration, development and production. With this new industry comes a new source of safe, reliable, economic, efficient and environmentally friendly energy to customers in Atlantic Canada.

Cost
The total estimated cost of the entire pipeline project in Canada and the United States is approximately $1.8 billion (Cdn.) with the Canadian portion, including the mainline and the laterals, estimated to cost about $830 million. It is forecast that the project will provide a new tax base of more than $25 million annually for federal, provincial and municipal governments.

Construction
The construction phase began with the clearing of the main pipeline Right-of-Way in the Fall of 1998. Construction of the main pipeline began in May of 1999 and was completed in October 1999. The main pipeline received first gas from Sable Offshore Energy Inc. on December 31, 1999.

Length
The Canadian portion of the main pipeline consists of 568 km of 762-mm (30") diameter underground pipe. The US portion consists of 156 km of 762-mm (30") diameter underground pipe and 327 km of 610-mm (24") diameter underground pipe. The size was increased in Canada to recognize the potential Canadian market demand and realize construction efficiencies.

Point Tupper Lateral
The Point Tupper Lateral Pipeline is approximately 59 km in length and includes associated metering, control and pressure regulation facilities. The first 55 km of the pipeline, from the main pipeline, is 8" in diameter and was installed at the same time as the Sable Offshore Energy Inc. natural gas liquids pipeline. The remaining 4 km of the pipeline is 6" in diameter. This lateral entered service on June 30, 2001.

Halifax Lateral
The 124 km, 12" diameter Halifax Lateral pipeline transports natural gas from the main transmission pipeline near Stellarton to the Halifax Regional Municipality.

Saint John Lateral
The 110 km, combination 4" and 16" diameter Saint John Lateral pipeline transports natural gas from the main transmission pipeline near Big Kedron Lake to the City of Saint John.

Current and future projects
Additional market potential exists in Cape Breton, Prince Edward Island, and northern New Brunswick.  M&NP is monitoring market interest in these areas for development for future laterals.

Phase IV Expansion Project
On June 15, 2001, subsequent to M&NP's  1999 Open Season, M&NP executed definitive agreements with PanCanadian Petroleum Limited in Canada and PanCanadian Energy Services in the U.S. for transportation services of up to 400,000 Dth/d (422,000 GJ/d) commencing as early as July 1, 2004.  M&NP anticipates filing the necessary applications with the NEB and FERC by December 2001, seeking regulatory authorization to construct, own and operate certain mainline compression and pipeline looping facilities required to meet this new service obligation.

The Phase IV Expansion Project is a process designed to meet new market demand through a phase-in of facilities prior to the in-service date of the PanCanadian volumes or for building facilities in addition to those required for the PanCanadian volumes to meet in-service dates during the 2004-2005 time period and beyond.  Through the addition of mainline compression and looping, M&NP is able to economically expand its system to provide access to incremental load growth in the eastern Canadian provinces and the northeast U.S. markets as early as  2002.  After the Phase IV Expansion Project Open Season and execution of definitive agreements, M&NP will incorporate any additional market demand into its year-end regulatory applications for construction of additional expansion facilities.