Spain's Repsol plans to build gas plant in Canada
Fri Sep 24, 2004 06:59 AM ET
reuters.com
MADRID, Sept 24 (Reuters) - Spanish oil and gas group Repsol YPF (REP.MC: Quote, Profile, Research) and Canadian firm Irving Oil have agreed to build a regasification plant in Canada -- Repsol's first project to help supply liquefied natural gas to the U.S. market.
The plant at the Canaport terminal in New Brunswick's deep-water Saint John Harbour, about 100 km (65 miles) from the U.S. border in Maine, would have an initial capacity of 5 billion cubic metres (bcm) per year, Repsol said on Friday.
Neither the cost nor the date for coming on line have been determined, a Repsol spokesman said.
Repsol called the building of its first regasification plant in North America a "significant step" in its LNG strategy for the Caribbean and North Atlantic basin of North American.
"The geographic location of the project is fundamental given its proximity to markets with high potential for growth like Boston and New York, which lead the United States in gas demand," Repsol said in a statement.
The gas would come from Trinidad & Tobago, from where Repsol exports the equivalent of 120,000 barrels per day (bpd), about 10 percent of its global output.
Irving Oil owns Canada's largest refinery with a capacity of 270,000 bpd, which is connected to Canaport and electricity generation plants at Bayside and Coleson Cove with a capacity of 1,325 megawatts, Repsol said. |
