CHEVRON CORP - Irving Oil and Chevron Canada Resources to Study Adding LNG - Capability at Irving Canaport
New York, New York, Sep 10, 2001 (Market News Publishing via COMTEX) -- Irving Oil Limited and Chevron Canada Resources announced that Chevron will join Irving Oil to continue a feasibility study to add LNG (Liquefied Natural Gas) capability at the Irving Canaport terminal in Saint John, New Brunswick.
Irving Oil announced last month that it was entering the next stage of the feasibility assessment and permitting process for this proposed facility. Adding LNG receiving and regassification (turning liquid natural gas back into vapor gas) capabilities would improve the ability to bring more natural gas to the North American market through the Canadian East Coast. The study team, which is comprised of individuals from both companies, will consider site, plant and pier design; North American markets and transportation; and LNG supply sources.
"We are very pleased that Chevron shares the same vision for the potential in this region, specifically in Irving Canaport's expanded capability, and that Chevron has decided to join with us in conducting the next phase of the feasibility assessment for this project," said Kenneth Irving of Irving Oil. "Chevron shares our strong commitment to Atlantic Canada, with significant positions off Newfoundland and Nova Scotia. This project would complement the region's developing energy infrastructure and the attractiveness of the Scotian Shelf and Newfoundland Grand Banks."
"Chevron and Irving Oil have a long history of working together on the East Coast, and we're pleased to continue our relationship with them in a project that holds such potential," said Chevron President Jim Simpson. "Chevron owns several large undeveloped gas reserves along the Atlantic Basin which could be a potential long-term supply of LNG products."
Irving Canaport is situated in the most densely industrialized region north of Boston and is closer by ship than Houston to ports in Venezuela, Brazil, the North Sea and West Africa. In continuous operation since it opened in 1970, Irving Canaport was the Western Hemisphere's first deepwater terminal. Irving Canaport was expanded in the 1970s and was completely modernized in the late 1990s. It is one of the most modern and well-equipped receiving terminals in North America and has held a municipal zoning permit for handling natural gas for several years. Situated 60 miles from the US border, Irving Canaport covers 1,802 acres and has a water depth of 128 feet at low tide.
The Irving Canaport terminal is connected by pipelines to the Irving Oil Refinery five miles away. The total tank capacity is 12.5 million barrels. In addition to being linked to the Irving Refinery by pipelines, Irving Canaport is connected to the nearby Bayside and Coleson Cove Power Plants by pipelines. The total nameplate capacity of these two power plants is 1,325 megawatts. Irving Canaport is also connected to pulp, paper, and tissue mills.
About Irving Oil Limited
Founded in 1924, Irving Oil is a privately owned energy processing, transporting and marketing company with a history of long-term relationships. Irving Oil's 250,000 barrel-per-day refinery is predominantly an export refinery, and accounted for 35% of Canada's total petroleum exports in 2000. (This figure is expected to increase in 2001.) The Irving Oil Refinery is years ahead of environmental regulations, recently selling gasoline into the California market. Irving Oil is the region's largest purchaser of liquid petroleum gas.
About Chevron Canada Resources
Chevron Canada Resources (CCR), a subsidiary of Chevron Corp., is headquartered in Calgary, Alberta. Since 1938, CCR has been actively engaged in the exploration, development, production and marketing of crude oil, bitumen, natural gas, and natural gas liquids. CCR maintains production facilities in Alberta, Manitoba, the Northwest Territories, and Newfoundland. Its current exploration efforts are concentrated in the Mackenzie Delta and the offshore areas of Nova Scotia and Newfoundland.
Some of the items discussed in this press release are forward-looking statements relating to the future impact and performance of a possible LNG facility in Saint John, New Brunswick, Canada. These are based on management's current expectations, estimates and projections. The statements included in this release are not guarantees of future performance. Actual outcomes and results could differ materially from what is expressed or forecasted in these forward-looking statements.
Visit our web site at www.irvingoil.com
CONTACT: TEL: (506) 202-2433 Daniel Goodwin, Irving Oil
TEL: (403) 234-5179 Lynn Lehr, Chevron Canada Resources
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