Irving Oil Limited and Repsol YPF, S.A. have entered into definitive agreements to develop
an LNG import and regassification terminal in Saint John, New Brunswick,
Canada. The agreements form a new company, Canaport LNG, which will construct,
own and operate the terminal.
The Canaport LNG terminal will initially be capable of delivering
1 billion cubic feet per day of regassified LNG into the market, as provided
in its existing permit. Repsol will be responsible for providing all of the
LNG and will hold the capacity of the terminal. Irving Oil will market the
regassified LNG in Atlantic Canada, and Repsol will market the regassified LNG
elsewhere in Canada and in the USA.
The parties have nearly completed front end engineering design for the
terminal, and plan to request proposals for engineering, procurement and
construction (EPC) contracts during July of this year. The terminal will be
operational, delivering regassified LNG into the marketplace, during 2008.
This agreement is a key element for Repsol YPF's LNG projects in the
Atlantic Basin, one of the principle vectors of growth for the 2005-2009
period as outlined in Repsol YPF's Strategic Plan.
Repsol YPF considers this to be a very important step in completing its
integrated LNG value chain, ensuring secure supplies of natural gas to key
markets in the USA and Atlantic Canada, both areas where there is a growing
demand for natural gas.
Irving Oil is very pleased to be partnering with Repsol, a company that
has a strong international reputation and is a world leader in the LNG
industry. Irving Oil sees the Canaport LNG terminal as central to meeting the
increasing demand for natural gas in the US Northeast and Atlantic Canada.
This is a significant milestone in Southern New Brunswick's growth as an
important energy hub.