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Nova Scotia is launching a $30-million program to study the potential for developing natural gas within the province.
The initiative aims to determine whether local resources could help reduce energy costs and create economic opportunities after more than a decade of inactivity in the onshore gas sector.
“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 program, called the Subsurface Energy Research and Development Investment Program, will be led by Dalhousie University.
The university will oversee research to better understand the size and location of Nova Scotia’s natural gas deposits and develop guidelines to ensure exploration and development are done responsibly. Dalhousie will also establish an oversight committee that includes representatives from academia, First Nations, the energy industry, the Department of Energy, and the public.
First steps include public engagement before research begins, followed by an open call for project proposals.
Dalhousie will set qualification criteria for companies and evaluate applications. Successful proponents will need to secure all required permits and approvals before any drilling starts. The province says it may hold equity in projects or earn revenue through royalties, with some of that revenue reinvested in municipalities near project sites.
“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 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.”
Dalhousie says it is committed to supporting the program through research and community engagement. “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,” said Graham Gagnon, acting Vice-President Research and Innovation at Dalhousie University.
Industry groups have also weighed in. “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,” said Lisa Baiton, President and CEO of the Canadian Association of Petroleum Producers.
Nova Scotia estimates there may be about seven trillion cubic feet of natural gas underground—roughly three times the amount once produced off Sable Island and enough to meet provincial needs for many decades. Exploratory wells that do not produce gas could still be assessed for geothermal energy and carbon capture research.
Dalhousie is expected to submit a final report by December 31, 2026, with published research papers to follow.
The province is also pursuing offshore development, with bids currently open for 13 parcels on the Scotian Shelf and slope.
Officials say the program is an early step toward understanding whether onshore natural gas can play a role in Nova Scotia’s energy future. Whether development moves forward will depend on research findings, regulatory approvals, and community input.
