Keltic announces petrochemical and LNG facility development project
cnw.ca
WestLB announced as Keltic Petrochemicals' Exclusive Financial Advisor
HALIFAX, Aug. 26 /CNW/ - Keltic Petrochemicals Inc., headquartered in
Halifax, Nova Scotia, has retained WestLB AG as exclusive financial advisor in
connection with the development of the company's planned US$ 3.3 billion
integrated petrochemical and liquefied natural gas (LNG) facility in Goldboro,
Nova Scotia. Additionally, Keltic has appointed WestLB lead arranger with
respect to debt and equity undertakings for the project.
Kevin Dunn, President of Keltic Petrochemicals, has stated, "Keltic is
pleased to have WestLB as a partner, as their financial expertise and key
contacts will keep our project on track."
Separately, Keltic has executed a memorandum of understanding with Stone
& Webster, Inc., a unit of The Shaw Group Inc. (NYSE:SGR) to provide front-end
engineering and design and EPC services for the overall project. Stone &
Webster is a recognized world leader in refinery and petrochemical process
technology and in the design, procurement, and construction of process plants.
In addition, Stone & Webster has significant experience in the planning and
development of LNG projects including terminals.
"Stone & Webster is the perfect turnkey partner for Keltic to deliver
this project to Goldboro," Dunn said.
Keltic's integrated project consists of a world-class petrochemical
plant, an LNG regasification receiving terminal and gas storage facility,
demethanizing units, power and steam co-generation up to 200 MW, and related
utility and offsite infrastructure and systems. The LNG facility will provide
feedstock to the petrochemical plant and natural gas to the Maritimes and
Northeast pipeline system. The project has been in development for four years
and is now in the environmental permitting stage, with the front-end
engineering and design phase scheduled to begin in September 2004. Keltic is
raising second-round equity for the project and expects to commence
construction by mid 2005.
WestLB is one of the leading providers of financial services in Germany
with total assets of more than (euro) 256 billion (as 12/31/03). WestLB
operates in international markets through a global network of offices in 28
countries, and is rated Aa2 by Moody's, AA by Standard & Poor's, and AAA by
Fitch IBCA.
COMPANY BACKGROUNDER
Keltic Petrochemicals Inc.
Keltic Petrochemicals Inc. is proposing to develop, construct, and
operate a world-scale petrochemical plant in Goldboro, Nova Scotia. When
completed, the facility will consist of ethylene, polyethylene, propylene and
polypropylene plants as well as a supporting cogeneration plant and receiving
terminal for liquefied natural gas (LNG). The petrochemical complex will be
the first of its kind in Atlantic Canada. Keltic will extract ethane and
propane from both LNG and natural gas that comes on-shore at Goldboro. The
ethane and propane will be converted into ethylene and propylene and further
processed into polyethylene and polypropylene resin (plastic pellets). The
resin will be sold to manufacturers for use in the production of consumer and
industrial plastic products. Keltic will have an annual production capacity of
1,450,000 tonnes.
In March 2000, W. Kevin Dunn, a native Nova Scotian and long-time Calgary
area businessman incorporated Keltic Petrochemicals Inc. Mr. Dunn witnessed
the unprecedented growth in Alberta as a result of developments in the oil and
gas industry and recognized the potential for similar opportunities in his
home province.
WestLB AG
WestLB AG is a European commercial bank and is one of Germany's leading
financial services providers. WestLB offers the full range of products and
services of a universal bank, focusing on financial advisory, lending,
structured finance, project finance, capital markets and private equity
products, asset management, transaction services and real estate finance.
WestLB Group employs approximately 7,700 staff worldwide. WestLB is financial
partner to major corporations and larger medium-sized companies, institutional
clients and public-sector clients. Thanks to its presence in the most
important financial centres around the world, WestLB provides acknowledged
capital markets expertise and access to international capital markets for its
clients.
Stone & Webster Engineering Ltd.
The Shaw Group Inc. is a leading provider of consulting, engineering,
construction, remediation and facilities management services to government and
private sector clients in the environmental, infrastructure and emergency
response markets. Shaw is also a vertically integrated provider of
comprehensive engineering, consulting, procurement, pipe fabrication,
construction and maintenance services to the power and process industries
worldwide. A Fortune 500 company with $3.3 billion in revenues in 2003, The
Shaw Group debuted on the magazine "America's Most Admired Companies" list in
2004. Shaw is headquartered in Baton Rouge, Louisiana, USA and employs
approximately 17,000 people at its offices and operations in North America,
South America, Europe, the Middle East and the Asia-Pacific region.
For further information: Keltic Petrochemicals Inc., W. Kevin Dunn,
(902) 422-4557; WestLB AG, Bran A. Raskovic, (212) 852-6120; Stone & Webster,
Inc., Don Bernard, (281) 368-4160 |
