HALIFAX, NS — Following its decision to allow compressed natural gas (CNG) to be delivered by truck, Nova Scotia has accepted all recommendations from an independent review of how CNG should be delivered in the province.

The report, released in April 2012, makes four major recommendations:

1. that the distribution of CNG to individual or closely related customers should be unregulated (not subject to the Gas Distribution Act).
2. that CNG distribution will be subject to the Gas Distribution Act where it is delivered as part of a public gas delivery system.
3. that truck delivery to customers who have the option of being supplied CNG by a public gas delivery system, like pipeline, is prohibited.
4. that the delivery system will be reviewed in five years.

All rules and regulations that apply to transporting fuel and propane will also apply to the delivery of CNG, as the report recommended.

Trailers used to transport CNG must receive approval from Transport Canada and meet the Transportation of Dangerous Goods Act standards.

The report concludes that the market is the best option for determining the conditions under which CNG will be a realistic fuel option for large-volume energy consumers. The impact of an open market for CNG distribution will be evaluated after five years.

“The conclusions [of the report] balance the interests of these businesses and institutions with the interests of those who will only have access to natural gas if we have a strong network of distribution pipelines that reach as many homes, businesses and communities as possible,” said William Lahey, who reviewed the options for CNG delivery.

Delivery of CNG by truck is not a viable option for residential customers because of cost and energy load needed.

See the full report here.