Federal Environment Minister John Baird has given the green light to EnCana's proposed Deep Panuke natural gas project in the waters off Nova Scotia, saying it is not likely to hurt the environment.
Baird has sent his recommendation to the National Energy Board, the Canada-Nova Scotia Offshore Petroleum Board and other federal agencies, which will make final decisions on the $700-million project.
If approved by the Calgary-based company's board of directors, Deep Panuke would become the province's second operating offshore gas project, the other being the Sable Offshore Energy Project.
The proposed project, scheduled to start production in 2010, was the subject of an environmental assessment process that included 30 days of public hearings in Halifax last March.
During those streamlined hearings, environmentalists criticized the process, saying they didn't allow enough time for questions on how the project will deal with its waste products and contribute to the buildup of greenhouse gases.
The project includes a jack-up mobile offshore production unit, subsea pipelines and an export pipeline.
Geologists estimate it will develop estimated gas reserves of 632 billion cubic feet -- enough to heat about three million homes for a year.
