Business Facilities - June 2008 - (Page 43)

BUSINESS REPORT New Brunswick By Leah Tieger Fueling North America’s Energy Demands New developments at Irving Oil and Point Lepreau will bolster New Brunswick’s already substantial energy production capabilities. N ew Brunswick’s energy exports account for 57% of the Canadian province’s overall exports, and this percentage is set to grow thanks to several recent developments. A new terminal being built by Canaport LNG; a proposed second refinery to be built by Irving Oil; and the proposed construction of a second reactor at Point Lepreau Generating Station, along with ongoing refurbishment of the existing reactor will all help the province become one of North America’s leading energy exporters. New Brunswick is adjacent to the United States border and 100 million North Americans live within a radius that is less than a day’s drive from New Brunswick, all of which makes for remarkably con- venient distribution. Discussing New Brunswick’s proximity to New England, Minister of Energy Jack Keir observes that the Canadian province “sit[s] on top of the largest demand market in North America.” One of the new facilities that will help meet this demand is the Canaport LNG terminal being built in St. John, New Brunswick. The company is comprised of a joint venture formed between Irving Oil (which owns 25% of the company) and Repsol YPF (which owns 75%). LNG is an acronym for liquefied natural gas, a raw material that will be supplied to the Canaport terminal by Repsol. The terminal will reconstitute LNG back into gas in a process known as regassification, at which point it will be marketed in Eastern Canada by Irving Oil and in the remainder of Canada and in the Untied States by Repsol. The natural gas produced at the site ultimately will be used by consumers for heating, cooking, and electricity. First formed as a stand-alone company in 2005, Canaport LNG’s terminal will be completed by the end of 2008. It is slated to supply 20% of the natural gas required by Canada and the American Northeast. The $750 million facility is the first of its kind in Canada, and there are only six such existing facilities in all of North America. Set to process 1 billion cubic feet of natural gas per day, the terminal will deliver gas to the American border via a $200 million 90-mile pipeline that also is currently under construction. As of FebNEW BRUNSWICK FAST FACTS Population (2008 estimate): 751,250 Largest Cities (2006): Moncton census metropolitan area (CMA), 126,424; Saint John (CMA), 122,389; Fredericton census agglomeration (CA), 85,688; Bathurst (CA), 31,424; Miramichi (CA), 24,737 Targeted industries: Business process outsourcing, software development, IT services, data centers, conventional and alternative energy plastics/composites, machinery, precision manufacturing, petrochemicals, food and beverage processing, resource processing, pharmaceuticals NEW BRUNSWICK DOMESTIC EXPORTS Energy Machinery & Automotive Consumer TOTAL (billions) % GDP Products (millions) Equipment (millions) Products (millions) Goods (millions) 2002 2003 2004 2005 2006 8.2 38.6 3312.2 8.5 38.1 3871.1 9.4 40.2 4470.9 10.7 44.2 6181.4 10.4 41.5 5811.7 576.0 514.8 565.3 459.1 472.0 28.9 31.2 35.0 33.3 45.3 47.3 40.8 87.8 48.9 71.3 SOURCE: STATISTICS CANADA BUSINESS FACILITIES 43

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Business Facilities - June 2008 Contents First Word Snapshots Metro Spotlight: Austin, TX The Greening of America Winds of Change in the Berkshires Hot Logistics Locales Metro Spotlight: New Mexico Borderplex Hollywood on the Louisiana Bayou Idaho: Gem State's Economy is Glittering Mayor's Reports New Brunswick, Canada's Export Leader Virginia: Where Business and Fun Come Together How Green Is Your Site? Maine's New Maritime Marketing Message Corporate Moves: Alabama Advertiser Index Ask the Expert

Business Facilities - June 2008

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