Canaport LNG Project Reaches Two Key Milestones

Canaport LNG, the partnership between Repsol YPF and Irving Oil, has awarded the onshore and offshore Engineering, Procurement, and Construction (EPC) contracts and issued the final notice to proceed for the construction of the first new liquefied natural gas (LNG) receiving terminal on the East Coast of North America in decades. Also, Repsol YPF completed its agreements to transport natural gas from the Canaport LNG Terminal to markets in Canada and the Northeast US via the Brunswick Pipeline and an expansion of the Maritimes & Northeast Pipeline system in the US.

SNC-CENMC, G.P., a partnership between SNC-Lavalin Inc., Canada's largest engineering and construction firm, and Saipem S.p.A. of Milan, Italy, was awarded the Engineering, Procurement, Construction (EPC) contract for onshore facilities and jetty topsides, providing full procurement and supervisory responsibilities for the onshore portion of the project.

Kiewit-Weeks-Sandwell Partnership, a consortium of Peter Kiewit Sons Co of St. John's, Newfoundland & Labrador; Weeks Marine of Cranford, New Jersey; and Sandwell Engineering of Vancouver, British Columbia, was awarded the EPC contract for the terminal's offshore facilities, including the receiving pier.

"The launching of this Project marks another key milestone for Repsol in accomplishing its strategy to grow its integrated LNG business worldwide," said Nemesio Fernandez-Cuesta, Director General of Repsol's Upstream and LNG Sector. "We look forward to being a part of the community of Saint John and the Atlantic Provinces, while providing secure natural gas supplies to them and the markets in the Northeast US. We are fortunate to have a partner such as Irving Oil in Canaport LNG and quality contractors SNC-Lavalin, Saipem, Peter Kiewit, Weeks Marine and Sandwell Engineering."

"With today's announcements, we take two big steps towards increasing the security of energy supply to the Northeastern region of North America and solidifying the Southern New Brunswick energy hub, " said Kenneth Irving of Irving Oil. "We're very pleased to have SNC-Lavalin and Saipem and Kiewit-Weeks-Sandwell working with us on developing this new major energy infrastructure. I want to thank Repsol for believing in our company and for sharing our confidence in this part of the world, and I want to thank our local community in Saint John, New Brunswick, for giving us the support that made it possible to bring this project home."

"This is a landmark LNG facility for Canada and for New Brunswick," said Pierre Duhaime, Executive Vice-President, SNC-Lavalin Group Inc. "The SNC-Lavalin-CENMC partnership is pleased to contribute its recognized EPC expertise in the execution of this large project."

"The Kiewit-Weeks-Sandwell partnership is delighted to have been selected to be a part of the new Canaport LNG Terminal near Saint John, NB," said Rod Hogg, Manager Business Development - Atlantic Region, Peter Kiewit Sons Co. "The partnership looks forward to working on this exciting new project and to providing a world class marine berthing facility for LNG tankers to deliver their valuable cargos to the North American market."

Site preparation, blasting, and leveling construction work was completed earlier this spring at the Canaport site. The Canaport LNG Terminal is scheduled to begin operations in late 2008. At commissioning, the terminal will have a send-out capacity of 1 billion cubic feet of natural gas per day (1 BCF/D, or approximately 10 billion cubic meters annually (bcma)), with a peak capacity of 1.2 BCF/D and will be expandable to 2 BCF/D when the market is ready for additional natural gas supplies.

Repsol YPF is an integrated international oil and gas company based in Madrid, Spain. Operating or present in more than 25 countries, Repsol YPF is one of the world's ten largest oil and gas companies, with a refining capacity of 1.2 million barrels a day, and oil and gas reserves totaling the equivalent of more than 5.4 billon barrels of oil. A leader in the global LNG field, Repsol YPF has projects underway in Canada, Algeria, Peru, the Middle East, and Mexico, and significant LNG-related investments in Russia, and Trinidad and Tobago. The Stream joint venture between Repsol YPF and Gas Natural is ranked third in the global LNG trade in terms of signed LNG contracts, and the companies are leaders in the Atlantic Basin. Repsol YPF and Gas Natural currently have a fleet of 11 tankers, with two additional tankers also signed to join the fleet in 2009, and representing around 1.5 million cubic meters in total capacity. Repsol YPF places high values on safety and the environment, technological innovation, and a resolute commitment to the communities in which they do business.

Founded in 1924, Irving Oil is a privately owned regional refining and marketing company with a history of long-term relationships. Irving Oil's 280,000 barrel-per-day refinery is predominantly an export refinery, and accounted for 64 per cent of Canada's total petroleum product exports to the US in 2005 and 19 percent of total US gasoline imports. Irving Canaport is a petroleum-receiving terminal situated in the most densely industrialized region north of Boston and is closer than the Gulf Coast to ports in Venezuela, Brazil, the North Sea and West Africa.

Canaport LNG Partnership Limited is a partnership between Irving Oil and Repsol YPF. Canaport LNG is to begin operation as a world-class liquefied natural gas receiving and regassification terminal in late 2008. Situated at Saint John, New Brunswick, Canada, Canaport LNG will have a send-out capacity of 1.2-billion cubic feet of liquefied natural gas a day, destined for markets in eastern Canada and the northeastern United States.