Irving, Repsol agree on Saint John LNG terminal

Irving Oil and its Spanish partner Repsol YPF have signed a definitive agreement to build a $750-million liquefied natural gas terminal in Saint John, N.B.

The two companies will form a new company, Canaport LNG, which will construct, own and operate the terminal.

The Canaport terminal will initially be capable of delivering 1 billion cubic feet per day of regassified liquefied natural gas under its existing permit.

Repsol will be responsible for providing all of the liquefied natural gas and will hold the capacity of the terminal. Irving Oil will market the regassified liquefied natural gas in Atlantic Canada, and Repsol will market it elsewhere in Canada and in the United States.

The terminal is expected to be operational by 2008. In March, the City of Saint John cut a deal with the companies to freeze annual property taxes on the terminal at $500,000 for 25 years.

However, New Brunswick's minister responsible for local government said this week it could be 2006 before the province makes a decision on the proposed tax deal.

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