Irving Oil and Repsol announced the initial phase of construction on their $445 million Canaport LNG import terminal, which will be located adjacent to Irving’s 250,000 bbl/d Canaport refinery in St. John, New Brunswick about 65 miles from the U.S. border.

The project is expected to be completed and in service by 2008 with deliveries of up to 750,000 Dth/d to U.S. and Canadian markets via the Maritimes & Northeast pipeline. The remaining 250,000 Dth/d will serve the refinery. The terminal also will have capacity to store 480,000 cubic meters of LNG.

Site clearing was completed in May 2005 and the initial construction phase will involve site excavation and leveling in preparation for full-scale construction. Front end engineering design for the project is complete, and Canaport LNG issued a request for proposals for engineering, procurement and construction (EPC) earlier this summer. Onshore construction is scheduled to begin in Spring 2006.

The two companies signed a partnership agreement in June and Repsol followed that up with a long-term transportation contract with Maritimes & Northeast for 750,000 Dth/d of firm capacity.

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