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Oct. 30, 2003 -- TransCanada Corp. and Grandview Cogeneration Corp., an affiliate of Irving Oil Ltd., announced they have reached an agreement to build a 90 MW natural gas-fired cogeneration power plant on the site of the Irving Oil Refinery in Saint John, New Brunswick.
The "Grandview" cogeneration facility will be developed and owned by TransCanada. Under a 20-year tolling arrangement, Irving will provide fuel for the plant and contract for 100 per cent of the plant's heat and electricity output.
Capital cost of the Grandview plant is estimated at approximately $85 million (Canadian dollars). Approximately 200 jobs would be created over the course of construction, which is anticipated to begin in November 2003, pending regulatory approvals. Irving first announced plans to develop a cogeneration facility at the Irving Oil Refinery in July 2002.
Since then, TransCanada and Irving have been focused on finalizing their agreement and obtaining environmental approvals for the facility. The Grandview Cogeneration plant is expected to be in service by the end of 2004.
"The Grandview plant is consistent with TransCanada's objective of building a balanced portfolio of low-cost, efficient power generation assets," said Hal Kvisle, TransCanada's chief executive officer. "TransCanada brings significant expertise to the development of mid-to-large size cogeneration power plants and we are proud that with this facility our operations will expand into Atlantic Canada."
"This project represents the kind of opportunity for investment in the region we said would be possible when we committed to purchase over $1-billion of Sable's natural gas production and helped make the Saint John lateral a reality," said Kenneth Irving. "We remain strongly committed to re-investment in the region and the continued economic opportunities that are created as a result. Cogeneration is a great environmental story, because we can make even more energy using the same amount of natural gas. Cogeneration has other benefits as well - major power outages due to ice storms or hurricanes, for example, would be unlikely to affect our refinery, allowing our people to continue producing fuels essential to our region."
Founded in 1924, Irving Oil is the regional energy processing, transporting, and marketing company focusing on customer service and supply chain management. Irving Oil serves customers in Eastern Canada, Quebec, and New England with a range of finished energy products, including gasoline, diesel, home heating fuel, jet fuel and complementary products and services.
Irving Oil's 250,000 barrel per day Saint John Refinery is Canada's largest and produces fuels years ahead of environmental regulations. In 2003, Irving Oil became the first oil company to win a USEPA Clean Air Excellence award, which it won for its low sulphur gasoline.
TransCanada is a North American energy company focused on natural gas transmission and power services. Its network of approximately 38,000 kilometres (24,000 miles) of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. Including the Grandview facility, TransCanada owns, controls or is constructing nearly 4,700 megawatts of power. More information - www.transcanada.com.
Note: All financial figures are in Canadian dollars unless noted otherwise.
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