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Emera to Invest $350 Million in Proposed Brunswick Natural Gas Pipeline |
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Written by Wire Services
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Tuesday, 16 May 2006 |
Emera Inc. will invest approximately $350 million, for full ownership of a proposed pipeline which will deliver natural gas from the planned Canaport Liquified Natural Gas (LNG) import terminal near Saint John, New Brunswick to markets in Canada and the US Northeast.
The 145-kilometre Brunswick Pipeline will travel through southwest New Brunswick and connect with the US portion of the Maritimes & Northeast Pipeline (Maritimes) at the international border near Baileyville, Maine. Emera has been an investor in Maritimes since its inception in 1999.
Chris Huskilson, President and CEO of Emera said, "This is a solid opportunity for Emera to grow its business with a quality project that builds on our investment in Maritimes," said . "LNG will play an important role in the energy security of the region, and will bring economic benefits. We are proud to be part of that."
Canaport LNG is a partnership of Repsol YPF, S.A. and Irving Oil Limited. Emera has negotiated a 25 year send-or pay toll agreement with Repsol to transport gas through the Brunswick Pipeline. Emera has also negotiated agreements with its Maritimes partner, Duke Energy, that will see an affiliate of Duke Energy continue its lead role in the Brunswick pipeline permitting process, and ultimately construct and operate the pipeline on Emera's behalf.
"We are pleased that Emera plans to invest in the Brunswick Pipeline while we continue with development of our related U.S. Mainline expansion," said Doug Bloom, President of Maritimes & Northeast Pipeline. "This project is critical to increasing natural gas availability in the markets served by Maritimes."
Brunswick Pipeline will be capable of carrying approximately 850 million cubic feet per day of re-gasified LNG. Capacity can be expanded with added compression. The project requires National Energy Board approval. A formal filing will be made shortly, and a public hearing is expected later this year. Construction is planned to begin in 2007 and be completed by late 2008.
"Adding a significant, secure, supply of competitively priced natural gas will ensure greater access to natural gas and more choice for consumers," said Mr. Huskilson. "However, it's important that all parties with an interest in the pipeline and the route have a chance to be heard. We will support openness to dialogue and transparency as owners of the pipeline."
Emera expects to finance the investment with a combination of equity and debt. |
