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Emera to Invest in Proposed Brunswick Pipeline – May 16, 2006

HALIFAX, Nova Scotia, May 16, 2006, (EMA-TSX):
Emera Inc. will invest approximately $350 million, for full ownership of a proposed pipeline which will deliver natural gas from the planned Canaport TM Liquified Natural Gas (LNG) import terminal near Saint John, New Brunswick to markets in Canada and the US Northeast.

The 145-kilometre Brunswick Pipeline will travel through southwest New Brunswick and connect with the US portion of the Maritimes & Northeast Pipeline (Maritimes) at the international border near Baileyville , Maine . Emera has been an investor in Maritimes since its inception in 1999.

“This is a solid opportunity for Emera to grow its business with a quality project that builds on our investment in Maritimes,” said Chris Huskilson, President and Chief Executive Officer of Emera. “LNG will play an important role in the energy security of the region, and will bring economic benefits. We are proud to be part of that.”

Canaport TM LNG is a partnership of Repsol YPF , S.A. and Irving Oil Limited. Emera has negotiated a 25 year send-or pay toll agreement with Repsol to transport gas through the Brunswick Pipeline. Emera has also negotiated agreements with its Maritimes partner, Duke Energy, that will see an affiliate of Duke Energy continue its lead role in the Brunswick pipeline permitting process, and ultimately construct and operate the pipeline on Emera's behalf.

“We are pleased that Emera plans to invest in the Brunswick Pipeline while we continue with development of our related U.S. Mainline expansion,” said Doug Bloom, President of Maritimes & Northeast Pipeline. “This project is critical to increasing natural gas availability in the markets served by Maritimes.”

Brunswick Pipeline will have a diameter of 30 inches and will be capable of carrying approximately 850 million cubic feet per day of re-gasified LNG. Capacity can be expanded with added compression. The project requires National Energy Board approval. A formal filing will be made shortly, and a public hearing is expected later this year. Construction is planned to begin in 2007 and be completed by late 2008.

“Demand for LNG is strong through the northeast. This agreement on natural gas transmission, along with agreements with Maritimes, completes the full value chain arrangements, and will enable our project to be first to market with secure natural gas supplies,” said Phil Ribbeck Director, LNG North America, for Repsol YPF. “We are happy to be working with strong regional partners such as Irving Oil, and now Emera.”

“Adding a significant, secure, supply of competitively priced natural gas will ensure greater access to natural gas and more choice for consumers,” said Mr. Huskilson. “However, it's important that all parties with an interest in the pipeline and the route have a chance to be heard. We will support openness to dialogue and transparency as owners of the pipeline.”

Emera expects to finance the investment with a combination of equity and debt. The investment is forecast to provide a return on equity of 11% - 14%.

About Emera Inc.

Emera Inc. (EMA-TSX) is an energy and services company with $4.0 billion in assets. Electricity is Emera's core business. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company, which together serve 580,000 customers. Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia . Bangor Hydro provides electricity transmission and distribution service to 110,000 customers in eastern Maine . Emera's other investments include a 12.9% interest in the Maritimes & Northeast Pipeline and Emera Energy Services which manages energy assets on behalf of third parties and provides related services.