Minas Basin Pulp & Power signs agreement with Heritage Gas for potential supply of natural gas for its facilities in Hantsport, Nova Scotia, by 2013

DARTMOUTH, Nova Scotia , April 2, 2012 (press release) – Minas Basin Pulp & Power Company Limited and CKF Inc. have signed an agreement with Heritage Gas Limited which the parties hope will lead to Heritage Gas delivering natural gas to Minas Basin Pulp & Power and CKF facilities in Hantsport by 2013.

“On behalf of the Heritage Gas team, I am delighted that we have an agreement in place to put Minas Basin Pulp & Power and CKF on the road to becoming our customers. They are major employers and energy users and Heritage Gas is looking forward to helping them save on their energy costs with a cleaner, greener source of energy,” said Jim Bracken, President of Heritage Gas. “With the price of natural gas expected to be perennially lower than oil, there are clear advantages for major employers and institutions in Nova Scotia like Minas Pulp & Power and CKF to make the switch to natural gas.”

As Hantsport is beyond the current Nova Scotia franchise area provided to Heritage Gas, the company is applying to the Nova Scotia Utility and Review Board to amend the current terms of its franchise to include the community.

“We are excited about having the chance to use natural gas as our energy of choice,” said Scott Travers, President, Minas Basin Pulp & Power. “This is one of our many efforts to improve our sustainability in the challenging pulp and paper sector. It is part of an overall effort to help us bring down a major cost of doing business and maintain jobs in rural Nova Scotia. A cleaner energy source is also aligned with our environmental initiatives.”

Heritage Gas is designing a compressed natural gas (CNG) loading and unloading system that will allow it to transport natural gas using specialized trailers instead of a long and more costly pipeline. Operating under a rigorous safety regime set out by Transport Canada and the Provincial governments, the transportation of compressed natural gas is used in other regions of Canada.

Since the Nova‚ÄźScotia based company was formed in 2003, Heritage Gas has invested $180 million on 300 km of infrastructure, delivering natural gas to over 3,600 residential, commercial and institutional customers. To date, natural gas is available in parts of Halifax, Dartmouth, Amherst, the area in proximity to the Robert L Stanfield International Airport, and the company is focused on continuing to grow its customer base. In January, Heritage Gas announced it had reached an agreement with Oxford Frozen Foods to provide natural gas to the company’s operations in Oxford, Nova Scotia. Construction of the natural gas system is on track to commence in early May with gas provided to Oxford Frozen Foods in July, 2012.

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