Repsol wins contract to build LNG terminal in Canada
Jun 7,10:00 AM ET
MADRID (AFP) - Spanish energy giant Repsol YPF said it had inked an accord with Canada's Irving Oil to construct a liquefied natural gas (LNG) terminal on the Canadian east coast.
The two firms had first announced in September that they were working on the deal to provide gas to markets. On Tuesday they gave no details of the cost of the work at Saint John, New Brunswick.
The re-gasification terminal, with an annual capacity of 10 billion cubic metres -- twice that initially conceived -- will be the first of its kind on the Eastern Canadian seaboard, Repsol said.
The project will see the creation of a new company, Canaport LGN, charged with constructing and managing the terminal, which Repsol will exclusively supply when it comes on stream in 2008 to supply the north east coast of North America.
Irving Oil will concentrate on marketing within eastern Canada with Repsol taking responsibility for commercialization in the remainder of the country and also in the United States.
Last week, Repsol, the biggest Spanish energy company, said it had signed an "agreement in principle" with Hunt Oil Company of Texas to provide gas to markets in North America and Central America.