Canaport LNG advances, plans delivery system

May 18, 2006
Canaport LNG, a partnership of Repsol YPF SA and Irving Oil Ltd., plans to start construction of its LNG regasification terminal near Saint John, NB, and has completed a strategy for transporting natural gas from the terminal to markets in Atlantic Canada and the northeastern US.

By OGJ editors
HOUSTON, May 18 -- Canaport LNG, a partnership of Repsol YPF SA and Irving Oil Ltd., plans to start construction of its LNG regasification terminal near Saint John, NB, and has completed a strategy for transporting natural gas from the terminal to markets in Atlantic Canada and the northeastern US.

Phil Ribbeck, Repsol YPF director, LNG North America, said the company has all permits needed for the terminal.

As much as 850 MMcfd of gas will flow from Canaport through New Brunswick via the proposed 145-km, 30-in. Brunswick Pipeline to a connection with the Maritimes & Northeast Pipeline (M&NE) system at the US border near Baileyville, Maine.

Emera Inc., an investor in Maritimes since its inception in 1999, will own the $350 million (Can.) Brunswick pipeline. However, it will be constructed and operated by an affiliate of Maritimes partner Duke Energy, Charlotte, NC, on Emera's behalf.

Canada's National Energy Board is seeking public comment by June 7 on the scope of the environmental assessment for the pipeline. Construction is scheduled to begin in 2007 and be completed by late 2008. Capacity can be expanded later with added compression, Emera said.

M&NE expansion planned
To accommodate the additional volumes, M&NE has applied to the US Federal Energy Regulatory Commission for authorization to expand its US pipeline system. The Maritimes Phase IV expansion would include the addition of five compressor stations and 1.7 miles of 30-in. pipeline in Maine and modifications to existing US facilities.

The Phase IV project will add about 418 MMcfd of capacity to M&NE's system. M&NE plans to begin construction in June 2007 and start up the additional service Nov. 1, 2008.

Maritimes & Northeast Pipeline LP, Halifax, NS, is a consortium of affiliates of Duke Energy, 77.53%; Emera, 12.92%; and Exxon Mobil Corp., 9.55%.