Canada gives Emera loan guarantee for Nova Scotia Maritime link

Friday, March 07, 2014

Reuters - Canada has finalized a federal loan guarantee of up to C$1.3 billion for Nova Scotia power company Emera Inc's Maritime Link power transmission project to connect the provinces of Newfoundland and Labrador and Nova Scotia.

"We are working to put the financing in place as soon as possible, which we expect to happen in the second quarter of 2014," Chris Huskilson, president and chief executive of Emera, said in a statement Thursday.

Jeff Myrick, a spokesman for Emera, said Friday that Nova Scotia power customers should save about C$250 million over the life of the project due to the federal loan guarantee because it will allow the company to get better financing terms.

The Maritime Link is Emera's part of the first phase of the Lower Churchill Falls project, which includes the 824-megawatt Muskrat Falls hydropower plant in Labrador, the Labrador-Island Transmission Link from Labrador to Newfoundland and the Maritime Link. One megawatt can power about 1,000 homes.

Emera and Newfoundland and Labrador province-owned energy company Nalcor Energy agreed in 2012 that Emera would invest 20 percent of the total cost of developing the first phase of the project and build the Maritime Link in return for 20 percent of the energy from Muskrat Falls for 35 years.

That 20 percent investment will cost about C$1.56 billion, according to Emera.

The first phase of the Churchill Falls project is expected to be completed in 2017 and will cost about C$7.8 billion, including both Nalcor and Emera's investments.

Nalcor, which will control the remaining 80 percent of the project's power, is building the Muskrat Falls plant, a transmission line connecting Muskrat Falls to its existing 5,428-MW Churchill Falls hydropower plant and the Labrador-Island Link.

Nalcor has said it expects to use about 40 percent of the project's power to meet domestic needs, with the other 40 percent available for the province or for sale to utilities in eastern Canada or the U.S. Northeast.

The Maritime Link will have about 500 MW of capacity and will include a 180-kilometer (112 miles) undersea link from Newfoundland to Nova Scotia.

French cable company Nexans SA will build the undersea cable.

Emera's Myrick said the company started clearing the trees in the right-of-way for the Maritime Link three weeks ago.

Emera will also own about 29 percent of the 900-MW Labrador-Island Link in Newfoundland and Labrador. The Labrador-Island Link will run 1,100 km from Labrador to Newfoundland, including 30 km under the Strait of Belle Isle between Labrador and Newfoundland, according to Nalcor's website.

Nalcor hopes to build the second phase of the Lower Churchill Falls project - a 2,250-MW hydropower plant at Gull Island - at some point in the future.

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

CORIMA Orders a Damen ASD Tug 2810

CORIMA, part of the Italian Gesmar Group, has ordered a Damen ASD Tug 2810.   The Damen ASD Tug 2810, which has a 60 metric tons bollard pull, will be deployed in the port of Ancona.

Enterprise Contracts to Boost U.S. Crude Exports

Enterprise bumps up exports through annual contracts; signs 2015 contracts with PDS, Vitol; seeks one more term buyer. U.S. exports of condensate have been given

Tighter Supertanker Market Impacts Asian Fuel Supplies

The window to sell Western fuel oil to Asia is starting to close as demand for a limited fleet of supertankers to store cheap crude pushes freight rates to multi-month highs,

Finance

NewLead Expands Fleet to 10 Vessels

NewLead Holdings Ltd. announced that it recently added five bitumen tanker vessels, expanding its fleet to 10 vessels in less than a year while performing on its

Tanker with Kurdish Crude Leaving U.S. After 6-month Dispute

After being stuck in legal limbo for six months, a tanker loaded with 1 million barrels of Kurdish crude headed east on Tuesday to leave U.S. waters after Baghdad

Hellman & Friedman Sells Out of GTT

Gaztransport & Technigaz S.A. (GTT) announces that H&F Luxembourg 1 S.à.r.l., an affiliate of Hellman & Friedman, has completed the sale of its remaining holding

Energy

Libya Returns Fuel Tanker to Rival Government

Libya's recognized government has released a tanker forced to dock at a port under its control after originally banning it from delivering fuel to its rival administration,

US Proposes Allowing Oil, Gas Drilling off Atlantic Coast

The Obama administration on Tuesday proposed allowing for the first time oil and gas exploration in a wide swath of U.S. waters off the Atlantic Coast.   The

NOIA: Draft Offshore Lease Program Both Hits and Misses

National Ocean Industries Association (NOIA) President Randall Luthi issued a statement on the 2017-2022 Draft Proposed OCS Oil and Gas Leasing Program, stating the U.

Government Update

Libya Returns Fuel Tanker to Rival Government

Libya's recognized government has released a tanker forced to dock at a port under its control after originally banning it from delivering fuel to its rival administration,

US Proposes Allowing Oil, Gas Drilling off Atlantic Coast

The Obama administration on Tuesday proposed allowing for the first time oil and gas exploration in a wide swath of U.S. waters off the Atlantic Coast.   The

NOIA: Draft Offshore Lease Program Both Hits and Misses

National Ocean Industries Association (NOIA) President Randall Luthi issued a statement on the 2017-2022 Draft Proposed OCS Oil and Gas Leasing Program, stating the U.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.5187 sec (2 req/sec)