NSBI Land Sale to Bear Head LNG Corp Completed

May 2, 2005

Halifax (May 2, 2005) - Construction of Nova Scotia's new liquefied natural gas (LNG) terminal and re-gasification plant at Bear Head is set to begin this summer.

Nova Scotia Business Inc (NSBI) has announced completion of the sale of an industrial site at Bear Head, Richmond Co., for $4.62 million to the Bear Head LNG Corporation, which will build and operate a $600-million LNG terminal and re-gasification plant on the site.

Stephen Lund, president and CEO of NSBI, made the announcement today, May 2. The property includes 179 acres of land and a 67-acre water lot.

The completion of the land sale represents a major milestone in the life of the project," said Mr. Lund. "Construction of the facility will begin this summer, and we look forward to the first flow of gas into the pipeline from the Bear Head LNG plant in 2008."

Acting as the project manager for the Bear Head LNG opportunity on behalf of the province, NSBI completed the transaction as part of its energy-sector strategy. In order to maximize the potential economic gains from the LNG opportunity, NSBI is also actively pursuing new, promising gas-related commercial opportunities.

The Bear Head LNG terminal and re-gasification plant will ensure a long-term gas supply to the province and the northeast United States.  The operation, taken together with Nova’s Scotia current offshore gas resource base, will result in the expansion of existing pipeline infrastructure into the New England market and enhance the province’s position as a key energy supply region in North America.

"This project in the Strait of Canso region will have a major impact on the economic future of the province and the energy supply chain in North America," said Mr. Lund. "Community leadership, a world class site, and strong commercial partners with a solid business plan combined to make this massive project a reality."

Following an August 2004 project announcement, the industrial site and access road were prepared for the beginning of plant construction, which will start in the summer of 2005. The terminal and re-gasification plant will be operational by mid 2008. Re-gasification is the process by which liquefied natural gas is converted back to a gaseous state prior to transmission through a pipeline.

The three-year construction phase of the project will create an average of 600 jobs, with 35 to 40 permanent positions when operations begin.

Nova Scotia Business Inc. is the business development agency for Nova Scotia, led by a private-sector board of directors. It is the investment attraction arm of the province and helps companies in Nova Scotia meet their growth potential through business advisory, export development and financing services.

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Mel Rusinak
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