November 8, 2004

Marsulex to expand services to Shell, Petro-Canada

TORONTO, ONT-Marsulex is in the final stages of discussion with Petro-Canada and Shell Canada Products to expand the scope of services provided by Marsulex's Montreal facility to the Petro-Canada and Shell refineries in Montreal. The refiners will be required to meet new on-road diesel sulphur regulations by 2006 and Marsulex has provided both Montreal refineries with sulfur recovery and site emission services for more than 45 years. Under the proposed agreement, Marsulex will expand the capacity of its existing facility by over 50% and the amended service agreements will be extended from 2010 to 2015. The capital cost of the expansion is estimated at $47 million, which Marsulex will fund from internally generated cash. In return, Petro-Canada and Shell will pay Marsulex a combination of facility fees, pass-through costs and return of capital. The two petroleum firms have signed interim agreements with Marsulex, allowing work on the project to begin as soon as possible. Final agreements should be concluded by the end of 2004. Meanwhile, BPR Bechtel has been selected to provide engineering, procurement and construction management services. Engineering and site preparation work has begun, with project completion scheduled for early 2006. More information is available from Marsulex president and CEO David Gee, 416/496-4178, or on the company Web site, www.marsulex.com.
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