August 26, 2003

LNG terminal planned for Nova Scotia
Access Northeast Energy Inc. (ANE) proposes to develop and operate a liquefied natural gas (LNG) terminal at Bear Head near Point Tupper, Nova Scotia in Canada to meet the growing demands for natural gas in North America. The development would include marine offloading, LNG storage and re-gasification facilities to deliver gas into the Maritimes and Northeast Pipeline, which services the Eastern Canada and Northeast U.S. gas markets. Pending receipt of appropriate permits, the proposed Bear Head LNG terminal would be in commercial operation with 750 mmcf/day to 1 Bcf/day of send-out capacity by November 2007.
The President of ANE, Gordon Hart,says the assessment of the project feasibility is proceeding as planned. The current phase of activity includes securing commercial commitments from LNG producer/shippers, firming up the project design basis, environmental permitting and approvals, and the public consultation process.

"We believe the Bear Head LNG Terminal will offer attractive opportunities for the community and for LNG producers/shippers wishing to access North America's premier East Coast natural gas markets," says Hart.

With assistance from Nova Scotia Business Inc. and the Province of Nova Scotia, ANE has secured a 160-acre land option at Bear Head on the Strait of Canso (approximately 200 kilometers north of Halifax, Nova Scotia) that offers LNG producers/shippers:

the shortest shipping distance to the Eastern Canada and U.S. markets for the majority of Atlantic Basin LNG producers/shippers;

a year-round, ice-free, deep water harbor capable of handling the world's largest current and proposed LNG vessels;

a wide turning area with unobstructed access for LNG vessels;

an area zoned for heavy industrial development;

existing industries related to the energy sector; and

close proximity to an existing major international pipeline.

The municipal planning strategy has designated the Bear Head site as Port Industrial (I-2) zoning, which includes fuel bunkering, marine terminals, and other heavy industrial or port activities.

Building upon discussions already held with the business community, ANE will continue its public consultation program this fall. ANE will hold its first public open house September 25th to inform area residents about the project, including local First Nations and relevant stakeholders. The environmental assessment process initiated by ANE will identify and address any potential issues and concerns.

"We have received support for the project from the business community, all levels of government and our industrial neighbours," says Hart. "We are committed to ensuring the project achieves its potential and contributes fully to the Nova Scotian and Canadian energy sectors."

"The introduction of liquefied natural gas to Nova Scotia reflects the growing demands for natural gas in North America," says Mr. Hart. The proposed Bear Head LNG project will add to the existing Atlantic Canada energy infrastructure, will aid in the development of future offshore and onshore gas fields, and potentially support complementary industrial development opportunities.

The Bear Head LNG Terminal project team includes the engineering firm of KBR (Houston, TX); the environmental firm of Jacques Whitford Environment Limited (Halifax and Port Hawkesbury, NS); the investment firm of ARC Financial Corporation (Calgary, AB); legal counsel of Cox Hanson O'Reilly Matheson (Halifax, NS); the accounting firm of Gregory Harriman (Calgary, AB) and the public relations firm of MT&L Public Affairs (Halifax, NS). ANE will continue to work closely with Nova Scotia Business Inc., (NSBI), the Municipality of Richmond and the Town of Port Hawkesbury to progress the project.

Access Northeast Energy Inc. is a private, Canadian energy infrastructure company focused on development of LNG and related facilities in North America.

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