The Maritime Market Monitoring Team was established following the NEB hearings on rules for short-term exports of natural gas. Those hearings were held in July in Fredericton. The Board felt that no direct evidence was produced indicating that Maritime gas buyers have not had access to Scotian offshore gas supplies on terms and conditions similar to those in export markets. Also, the Board noted that there was no evidence produced indicating that any gas seller has refused to negotiate in good faith.

The National Energy Board determined that there was no need to establish a new set of procedures for the approval of short-term gas exports; however, it did recognize that there are some unique aspects of the natural gas markets in Maritime Canada that require some enhanced oversight by the Board. As a result, the National Energy Board mandated a team to monitor the progress of discussions and negotiations between gas suppliers in the Scotian Offshore, Maritimes and Northeast Pipeline and prospective gas consumers and other stakeholders in Maritime Canada.

"I am pleased to report that my staff met with the National Energy Board's Maritime Market Monitoring Team recently and that we were able to report that significant progress has been made with respect to securing natural gas supplies for a PEI Lateral Pipeline and that all partners, gas suppliers and Maritimes and Northeast Pipeline have been extremely cooperative in helping us move our projects forward," stated Minister Currie. NEB staff were also advised that the province had come to a general understanding with one major gas supplier and that a Gas Supply Term Sheet will be signed in early January.

A Term Sheet is the foundation for a Firm Gas Sales Agreement . The term sheet includes the basic terms and conditions under which natural gas will be sold, including price, volumes and the term of the contract.

"Finalizing the Gas Supply Term Sheet will allow the PEI Natural Gas Development Plan to progress to the next stage of development," said Minister Currie. "We can now continue negotiations with Maritimes and Northeast Pipeline on the economics of the PEI Lateral and have detailed engineering completed which will give us a definitive cost estimate for the lateral pipeline."

Minister Currie also commended all the partners in the project for their willingness to move the project forward. "Our progress demonstrates a real desire from all parties to continue the process of developing natural gas markets in Atlantic Canada," he said.