By the OGJ Online Staff
HOUSTON, July 25 -- Irving Oil Ltd. Wednesday said it plans to build a $500 million (Can.) liquefied natural gas (LNG) regasification facility at its deepwater oil terminal near Saint John, NB.
In continuous operation since 1970, Irving said its Canaport facility was the Western Hemisphere's first deepwater terminal. Irving said the terminal has held a municipal zoning permit for handling natural gas for several years.
The terminal, near St. John, is 60 miles from the US border and 5 miles from the company's 250,000-b/d refinery. Tankage is 12.5 million bbl. The company said its ice-free port has a water depth of 128 ft at low tide and is the nearest one to US markets capable of receiving supertankers.
Pipelines connect the terminal to the Irving refinery. Also connected are the Bayside and Coleson Cove power plants, which together have capacity of 1,325 Mw.
Kenneth Irving, an owner of the privately held oil company, said, "Adding natural gas capability at Irving Canaport would act as a catalyst for future investment in the region, as well as enhance the attractiveness of the Scotian Shelf and the Newfoundland Grand Banks."
He noted the New Brunswick government's recent energy white paper said construction of an LNG terminal would help the province secure a cost-effective energy supply.
Founded in 1924, Irving Oil is a refining, transportation, and marketing company. Its refinery mostly exports its products and accounted for 35% of Canada's petroleum exports in 2000.