Ground Broken For Liquified Natural Gas Terminal

PREMIER'S OFFICE--Ground Broken For Liquified Natural Gas Terminal

Thanks to a partnership of business, government and the Strait area community, Nova Scotia's Liquified Natural Gas (LNG) Terminal is on its way to becoming a reality, Premier John Hamm said today, Oct. 28, at a ground-breaking ceremony by Anadarko at the Bear Head, Richmond Co., site.

"With construction of our province's first liquified natural gas terminal underway, Nova Scotia is turning the corner on yet another exciting chapter of our growing natural gas industry," the premier said.

Anadarko Petroleum Corp., one of the largest independent oil and gas exploration and production companies in the world, today celebrated the start of construction on their LNG project in Cape Breton's Point Tupper Industrial Park.

"In August, our province officially welcomed Anadarko to Nova Scotia's Strait region. I am so pleased to be here so soon after, to be a part of the ceremonial ground-breaking on the LNG project," Tourism, Culture and Heritage Minister Rodney MacDonald said on behalf of Energy Minister Cecil Clarke. "This project is a landmark for our region's economy and future."

The premier noted during the ground-breaking ceremony that the full potential of this project remains to be measured. He said it will, however, produce more jobs and a more prosperous regional economy.

In September, Service Nova Scotia and Municipal Relations announced that the Municipality of the County of Richmond and Anadarko had reached a 20-year agreement allowing Richmond to collect taxes based on the estimated cost to construct the Bear Head LNG Terminal. This means the municipality will collect at least $3 million per year in municipal taxes once the terminal is operational in late 2007. Taxes may increase if the actual costs are higher than estimated.

Anadarko will continue to develop and invest in the $450-million LNG project, which is expected to produce about 1,000 construction jobs in the Strait area within the next three years. Following the project's completion, the facility will employ about 40 employees full time, with the potential for spin-off industries.

Once again, the premier thanked Mike Bridges, president of Anadarko Canada, for his faith in the region and its workforce, acknowledged the hard work of representatives of Access Northeast Energy Inc., and recognized the many partners, including the municipality and local business community, who continue to be a key part of the project's success.

Nova Scotia's growth strategy, Opportunities for Prosperity, and energy strategy, Seizing the Opportunity, recognized the importance of the energy sector in expanding the province's economy.