News Release

For immediate release
February 3, 2003

Major Infrastructure Project Readies for Offshore Oil and Gas Industry in Strait of Canso Area

Mulgrave, N.S. – The Honourable Gerry Byrne, Minister of State for Enterprise Cape Breton Corporation (ECBC) and the Cape Breton Growth Fund (CBGF), together with the Honourable Cecil Clarke, Minister of Economic Development, announced today, funding for the Strait of Canso Superport Corporation Ltd. for a major oil-and-gas-related capital project at the Mulgrave Marine Terminal.

The Mulgrave project will provide the infrastructure necessary to serve the supply base needs of Nova Scotia’s offshore oil and gas industry. The proposed improvements to the existing Terminal will include infrastructure upgrades (water, sewer, lights and fencing), a new 35,000 sq. ft. building, secondary access roads, removal of obsolete buildings, mud and fuel storage pads, berms and service trenches and resurfacing of wharf lay-down areas. 

“Strategic investments must be made in anticipation of offshore requirements,” said Rodger Cuzner, MP for Bras d’Or–Cape Breton, speaking on behalf of Minister Byrne. “Over the next four years, in excess of $1 billion will be spent testing the areas northeast of Sable Island and the Laurentian Sub-basin, for potential oil and gas reserves. The level of activity and the location of this drilling will create demand for at least one additional supply base outside Halifax and the Strait of Canso is an ideal location.” 

“A major objective of Nova Scotia’s economic growth strategy is to gain onshore benefits from offshore development,” said Nova Scotia’s Minister of Education, the Honourable Angus MacIsaac, on behalf of Economic Development Minister Cecil Clarke. MacIsaac added that “This investment in the Strait of Canso’s offshore supply infrastructure will help Nova Scotia firms diversify, creating new skills and new jobs for their communities, and new revenues of benefit to all Nova Scotians.” 

Incorporated in 1997, the Strait of Canso Superport Corporation Limited (SCSCL) is a not-for-profit entity responsible for the operation, development and upgrading of the marine facilities of the Mulgrave Marine Terminal and the 
Port Hawkesbury Wharf, as well as marketing and promotion of the port facilities to increase cargo and vessel traffic in the Strait of Canso. To complement existing dock refurbishing, SCSCL will further improve the wharf area to make the facility more attractive as an offshore supply base. 

“There are a number of existing businesses in the Strait area that will benefit from the project,” said Paul Crissman, Chairman of the SCSCL. “We believe that new offshore service businesses will be attracted to set up at Mulgrave as part of the supply base and that additional private sector investment will be leveraged from those companies following the investment.”

The total cost for this infrastructure project is $5 million. Superport Corporation is investing $2.5 million. The Cape Breton Growth Fund is providing 
$1.25 million. ECBC will provide $750,000. All funding is non-repayable. It is anticipated that there will be 75 jobs created in association with future supply base activities, either by newly established offshore supply companies or by expansion of those already in the area. 

The CBGF is a partnership between the Government of Canada and the Province of Nova Scotia and has a mandate to assist in the transition of the Cape Breton economy. 

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA' s programs on Cape Breton Island and in the Mulgrave area.



FOR ADDITIONAL INFORMATION CONTACT:

Barbara Stead-Coyle
Cape Breton Growth Fund Corporation
Tel: 902-564-7331
Fax: 902-564-7339


Tim Gilfoy
Acting Chief Executive Officer 
Strait of Canso Superport Corporation Limited.
Tel: (902) 747-2410