April 21, 2008

Terasen gets approval for Vancouver Island gas storage facility

RICHARD GILBERT

staff writer

Terasen Gas is building a natural gas storage facility on Vancouver Island, to save the valuable fuel for a rainy day.

Terasen Gas (Vancouver Island) Inc. announced earlier this month that it has received final approval from the B.C. Utilities Commission (BCUC) to begin construction of the Mt. Hayes natural gas storage facility on Vancouver Island.

The storage facility, supplied by the company’s existing pipeline systems, will allow Terasen Gas to meet current and anticipated future gas demands on Vancouver Island.

The project will store liquefied natural gas during the summer months, which will then be regasified and used to serve high-demand periods during the winter.

“With this final approval, we can now move forward on an important investment in B.C.’s energy infrastructure — one that will provide benefits to our natural gas customers on Vancouver Island and the mainland,” said Randy Jespersen, Terasen Inc. president and CEO.

Terasen Gas received conditional approval from regulatory authorities in November to construct and operate the $200-million facility.

“During the approval process, Terasen Gas worked diligently with the local community to address social, environmental and safety concerns,” said Mary Marcotte, Cowichan Valley Regional District director.

The facility is expected to create a number of economic and employment benefits including local construction expenditures of about $50 million, local, direct employment of about 120 person years, nine full-time operations jobs at the facility, and opportunities for involvement of Chemainus First Nation people and businesses in the project.

The 20 hectare project site, known as Mt. Hayes, is located about six kilometres northwest of Ladysmith, B.C.

Construction will begin in April with the facility coming into service by late 2011.

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