Petrochemical firm gets conditional approval for Atlantic facility

Nova Scotia’s Minister of Environment and Labour Mark Parent has provided conditional environmental approval to a US$4.5 billion petrochemical and liquefied natural gas (LNG) project.

The approval came after a long assessment process to determine the environmental impact of the proposed Goldsboro, N.S. facility. The minister approved the project today, and Keltic Petrochemicals Inc. will be able to move ahead with construction if it satisfies all of the recommendations set out in the approval.

“Environmental approval is essential to allow us to move forward,” said Keltic president W. Kevin Dunn. “This approval strengthens our position and enables us to go to the next level with the feedstock supplier.”

The complex in Goldboro Industrial Park will house the petrochemical plant, a LNG facility, demethanizing units, a 200 MW power and steam co-generation plant, and related utility and offsite systems.

MapleLNG Limited purchased the company’s LNG segment in 2006, but Keltic still has the right to buy its feedstock for the petrochemical facility.

The ministry set out several terms and conditions as part of the approval. The company will have to conduct several other environmental assessments in order to satisfy the minister’s recommendations. Additionally, Keltic will still have to receive approval from other governing bodies, such as the federal government.

Dunn, who is a native Nova Scotian and a Calgary businessman, noted that the “world scale” plant would be the first of its kind in Atlantic Canada. The petrochemical facility will consist of ethylene, polyethylene, propylene and propylene plants.

The company says it will have an annual production capacity of 1.45 million tons, and its resins will be sold to plastic manufacturers for consumer and industrial applications. The facility could generate as many as 500 permanent jobs for the area.

Keltic expects the facilitys operations to commence in 2011.