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Anadarko's Scotian LNG Terminal to Begin Construction This Summer

Construction of a C$600 million liquefied natural gas (LNG) terminal and regasification facility on Cape Breton Island, along the Strait of Canso in Nova Scotia, is on track to begin this summer after Nova Scotia Business Inc. (NSBI) sold an industrial site to Bear Head LNG Corp., a subsidiary of Anadarko Petroleum Corp.

The 1 Bcf/d terminal, which would be built in Point Tupper, received final approvals last year and is expected to be in service in 2008 (see NGI, Aug. 16, 2004). The LNG site includes 179 acres of land and a 67-acre water lot.

"Construction of the facility will begin this summer, and we look forward to the first flow of gas into the pipeline from the Bear Head LNG plant in 2008," said NSBI CEO Stephen Lund.

NSBI is the business development agency for the province, and it is led by a private-sector board of directors. It completed the transaction as part of the province's energy sector strategy, and is the acting project manager for Bear Head LNG on behalf of the Nova Scotia province.

"This project in the Strait of Canso region will have a major impact on the economic future of the province and the energy supply chain in North America," said Lund. "Community leadership, a world class site, and strong commercial partners with a solid business plan combined to make this massive project a reality."

The three-year construction phase of the project will create an average of 600 jobs, with 35 to 40 permanent positions when operations begin.

Maritimes & Northeast Pipeline said a recent open season drew interest from potential shippers for about 1.5 Bcf/d of additional firm transportation capacity, which would be used to transport LNG from several proposed Canadian terminals (see NGI, May 2). About 4.5 Bcf/d of new LNG supply is planned at six proposed Canadian terminals, but Bear Head and Irving Oil's 1 Bcf/d Canaport LNG terminal in St. John, NB, have received the only regulatory approvals so far.

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