March 19, 2007

Keltic Petrochemicals granted EA approval for Atlantic Canada's largest LNG facility

Nova Scotia Environment and Labour Minister Mark Parent has issued an environmental assessment approval to Keltic Petrochemicals for a major liquid natural gas and petrochemical plant in Goldboro, Nova Scotia. The integrated, $4.5-billion (U.S.) facility will be the first of its kind in Atlantic Canada.

In addition to the ethylene, polyethylene, propylene and polypropylene plants and receiving terminal for liquefied natural gas (LNG), the complex, when completed, will include demethanizing units, a 200-megawatt (MW) power and steam co-generation plant, plus related utility and offsite infrastructure and systems.

"This is a large, complex proposal with significant implications for the environment and the community," Parent noted.

Company president Kevin Dunn said the environmental approval is a key milestone in project development and clears the way for construction and commercialization.

The decision is subject to several conditions that must be met before construction can begin. It requires the company to act on all 59 recommendations of the Nova Scotia Environmental Assessment Board (EAB) report, issued in February, through environmental approvals or requirements of other agencies. The project will also require approvals from the provincial Utility and Review Board and from the federal government.

A number of studies and reports deemed as necessary by the EAB must be completed before construction. Air quality management, water management, greenhouse gases, traffic impacts, and archeological surveys are among the areas to be studied. One study will address the environmental sustainability of the project, including an examination of resource use and emissions from the petrochemical plant, co-generation facility, and LNG terminal.

Other issues that must be addressed include contamination from past mining, fisheries and the presence of wetlands. More than 30 of the reports, studies, and plans were named as requirements by the company itself in its Environmental Impact Study report.

The EAB held hearings in three different locations over a six-day period to provide all stakeholders an opportunity to express their views on the project and the impact that it will have on their lives. "There has been tremendous community support throughout this process," Dunn said. He added that Keltic is committed to continuing consultation with the community and intends to hold another open house soon to update the public on the progress of the project ensure that their concerns are addressed.

With regulatory approvals in place, the project could begin construction later this year with operations scheduled to commence in 2011.

The decision may be viewed on the Environment and Labour Web site,

Dunn, a native Nova Scotian and long-time Calgary area businessman, formed Keltic Petrochemicals in March 2000. Having witnessed Alberta's unprecedented growth in Alberta as a result of developments in the oil and gas industry, he recognized the potential for similar opportunities in his home province. More information is available from Kevin Dunn at Keltic Petrochemicals, 902/422-4557.

Table of Contents  | Top of Page

Ecolog Network