PDA

You are viewing a trimmed-down version of the SkyscraperPage.com discussion forum.  For the full version follow the link below.

View Full Version : Ottawa green-lights Goldboro LNG plan



Haliguy
Mar 8, 2008, 1:03 AM
Ottawa green-lights Goldboro LNG plan
Last Updated: Friday, March 7, 2008 | 5:58 PM AT Comments0Recommend10
The Canadian Press

The federal government has given its environmental approval to a proposed $4.6-billion liquefied natural gas terminal in Nova Scotia despite biologists' fears the project may harm an endangered population of rare seabirds.

Environment Minister John Baird's decision was issued Friday, with a brief statement saying Ottawa accepts the measures proposed by the consortium to protect the birds and offset other environmental risks.

"The project … is not likely to cause significant adverse environmental effects," said a news release.

The approved plan promises the companies behind the project will commission a study this spring of the foraging habits of the roseate terns, which look like small gulls with black caps.

It also says that ships can't come closer than 200 metres to the small island where the 25 breeding pairs, a quarter of the Canadian population, nest.

Several hundred tankers of liquefied natural gas, known as LNG, a year are expected to enter the small, rural harbour at Goldboro on Nova Scotia's eastern shore if the project proposed by Keltic Petrochemicals Inc. and MapleLNG Ltd. proceeds.

The companies are planning to construct and operate a wharf, marine terminal, transfer pipelines, storage tanks and regasification facilities, which transform natural gas from the liquefied form used during transport to its regular,market-ready form, by 2012.
Companies seeking gas suppliers

Peter MacKay, the federal minister responsible for Nova Scotia, announced Baird's approval of the project while visiting the area on Friday.

"I think it means a lot to the people of the county in terms of jobs, benefits and infrastructure," he said in an interview.

"Now that we're through the environmental stages, the companies can get on with the various licences that are required, and hopefully, we'll see construction."

Asked about the impact on the terns, MacKay said, "All the parties are committed to work together to ensure there isn't any disruption."

The companies involved praised Ottawa's decision, saying it increases their chances of finding a supplier of the fuel and obtaining a contract with the Maritimes and Northeast Pipeline for transporting gas.

"This took a long time, but it's good for the project," said Harry van Rietschoten, general counsel to 4Gas Inc., the firm that is seeking a source of supply for the gas.

He said after a construction permit is issued, "suppliers around the world will take this project seriously."

"That's important to us, because then you can really kick this off."

The Dutch-based firm, controlled by The Carlyle Group of Washington, expects to find a supplier in six months to a year, said van Rietschoten.

An environmental decision on the project was expected before Christmas. However, federal officials have said a review of concerns about the threatened population of terns played a role in delaying approval.

The bird is listed as endangered under both the federal Species at Risk Act and the provincial Endangered Species Act.
Project not environmentally sustainable, biologists say

Chantal Gagnon, who prepared a report on the project for the Halifax-based Ecology Action Centre, said her group remains unconvinced the project has an adequate plan to protect the bird.

"If anything happens, if anything goes wrong, a good portion of the population of this bird could be hurt," she said.

The terns feed in shallow waters on small fish, such as sand lances and silver hake, and the environmental groups argue the shipping activity will make it harder for the birds to find food.

The group also is arguing that the petrochemical plant and the creation of the pressurized gas will add to greenhouse gas emissions.

"The project as a whole is not environmentally sustainable and we don't think it's the kind of project we should be having on our coast," said Gagnon.

Martha Leonard, a biologist at Dalhousie University in Halifax, said studies indicate that the birds forage in shallow waters.

"Anything that disrupts their foraging ground could cause a problem, because the bird needs this shallow water and a certain species of fish," she explained.

Angela Tu Weissenberger, the Ottawa-based author of a study on LNG prospects in North America, says the project still faces hurdles.

"The gas supply situation is actually very tight right now, because you have Europe and Asia increasing their demand, and those regions are willing to pay higher prices for the fuel," she explained.

The proposed project includes five storage tanks with a gross capacity that would allow one billion cubic feet of gas to be sent out every day.

Construction is expected to create 3,000 jobs, and the petrochemical plant is expected to provide 500 full-time positions.

Haliguy
Mar 14, 2008, 2:01 PM
MapleLNG applies to build $700m gas terminal

By BRUCE ERSKINE Business Reporter
Fri. Mar 14 - 6:16 AM

MapleLNG has applied to the Nova Scotia Utility and Review Board for a permit to build a $700-million liquefied natural gas terminal in Goldboro, but the project needs the approval of the firm’s backers, says a company spokesman.

"The project still requires sanction from the investors," Bill Simpkins said in an interview Thursday.

Mr. Simpkins said a decision to proceed with the terminal, which would have an initial capacity of one billion cubic feet of gas per day, is expected late this year.

MapleLNG is the Canadian subsidiary of 4Gas, a Rotterdam-based company developing LNG terminals globally, and Suntera.

Suntera is a joint venture between Sun Energy, the energy investment arm of private investment firm Sun Group, and Itera, one of Russia’s largest oil and gas companies.

4Gas and Suntera Canada Ltd. purchased the MapleLNG project in 2006 from Keltic Petrochemicals Inc., a Halifax firm that plans to build a $4-billion plastics plant adjacent to the MapleLNG terminal.

Last week, both projects were approved by the federal Environment Department, despite concerns about their environmental impacts. Mr. Simpkins said that approval prompted MapleLNG’s construction permit application. The project is expected to create 500 to 600 construction jobs over three years and is scheduled to be completed in late 2011.

The terminal, which would employ 40 people, will regasify liquefied natural gas brought to the site by ship. The gas will be carried to North American markets via the nearby Maritimes and Northeast pipeline.

MapleLNG and Keltic haven’t contracted gas supplies for their respective projects, but Mr. Simpkins said potential suppliers wouldn’t enter into serious negotiations until the projects received all the required approvals, including the federal environmental approvals.

Irving Oil and Repsol, Spain’s largest oil and gas company, are building the Canaport LNG terminal and regasification plant in Saint John, N.B. It expects to begin receiving supplies of LNG from Trinidad later this year.

Mr. Simpkins said the Maple-LNG terminal and a 4Gas terminal planned for the Gulf of Mexico are being developed as access points to the North American market for a wide range of potential gas suppliers, which differentiates them from the Irving-Repsol operation, which he said is relying on a single-source gas supply.

"The 4Gas-Maple terminals are opportunities for companies or countries to flow gas to the markets of their choice," he said, noting that 4Gas has five LNG terminals under development worldwide, with one in Wales scheduled to begin operating this year.

One of 4Gas’s backers is Washington, D.C.-based Carlyle Group, a private equity firm whose British affiliate, Carlyle Capital Corp., recently defaulted on more that $16 billion in mortgage fund-related debt.

Mr. Simpkins said that fund has nothing to do with the MapleLNG project.

Keltic Petrochemicals isn’t subject to the regulations that required MapleLNG to apply to the review board for a construction permit, but company CEO Kevin Dunn said last week’s federal environmental approvals should also help accelerate gas supply negotiations for his project.

Mr. Dunn, who is travelling to the Middle East to continue ongoing talks with potential gas suppliers, said Thursday that construction of the plastics plant, which he noted would employ 600 people, could begin in the fall.

It could go into production by 2012 if a supply contract is signed soon, he said.

"With luck, by the end of April," he said when asked when he thought he might have a supply deal inked.

( berskine@herald.ca)



Forums Directory