Project Progress

Most members of the Saint John community know about the two major parts of Canaport™ LNGLP’s development — onshore and offshore.

The offshore component consists of the jetty, a metal support structure with a concrete deck that allows LNG ships to dock and unload LNG via pipes that carry it to the onshore tanks. Onshore components consist of the LNG tanks and the regasification equipment that will convert the LNG to a gaseous state, so it can be piped underground to customers as natural gas.

The onshore and offshore projects are both proceeding according to plan. For the offshore project, we’ve successfully installed 49 4-foot-diameter piles that will allow installation of the steel jetty structures that rest on the ocean floor and support the pier deck. This installation was completed in August.

For the onshore portion, we are finishing site preparation and the leveling of the ground to make sure that we have a flat and firm surface for each LNG tank. We are removing the remaining loose gravel and installing cement foundations, drainage systems and roadways. At the same time, many design aspects of the engineering are underway in locations such as Montreal and as far away as India. By Christmas, the tank base pads will be complete for the LNG tank construction crews to begin tank walls in early 2007.

In May 2006, we announced that we awarded the Engineering, Procurement, Construction (EPC) contract for onshore facilities to SNC-CENMC, G.P., a partnership between the engineering firms of SNC-Lavalin of Montreal, Quebec, and Saipem S.p.A. of Milan, Italy. This partnership was also tasked with full procurement and supervisory responsibilities for the onshore portion of the project. The Kiewit-Weeks-Sandwell Partnership (KWS) was awarded the EPC contract for the offshore facilities. KWS is a consortium of Peter Kiewit Sons Co of St. John’s, Newfoundland, Weeks Marine of Cranford, New Jersey, and Sandwell Engineering of Vancouver, British Columbia.

Besides the site’s onshore and offshore projects, there is also the construction of Mispec Road, By Gulf Operators, the new road that will lead into and out of the Red Head area and the Canaport™ LNGLP site by-passing Red Head Road. This construction too is on schedule and will be ready for traffic by the end of the year, with paving of the public segment scheduled for the 2007 construction season.

THE CONSTRUCTION IS PROCEEDING ON SCHEDULE

Meet the ContractorsONSHORE

SNC-Lavalin Inc.www.snclavalin.com

SNC-Lavalin (TSX: SNC) was founded in Montreal in 1911 and built up a reputation for civil engineering and power development throughout Canada. By the early 1960s, SNC-

Lavalin was also working on projects internationally, laying the foundation for its multicultural network of offices now established right across Canada, including in New Brunswick, and in 30 other countries around the world. Today, SNC-Lavalin is Canada’s largest engineering and construction firm and is currently working on projects from coast to coast, and in over 100 countries. SNC-Lavalin’s approximately 12,000 employees are dedicated to maintaining the highest standards of health and safety, while using the latest design and construction technology to provide engineering, procurement, construction, project management, operations and maintenance and financing services for projects in the power, chemicals and petroleum, infrastructure and environment, mass transit, mining and metallurgy, pharmaceuticals and biotechnology, agrifood and industrial sectors, as well as in defence programs.

CENMC, G.P.www.saipem.eni.it

CENMC is a part of the Saipem S.p.A. group. Saipem began operations in the 1950s as an onshore pipelay, plant construction, and drilling company. In 1969, it broke from the group and became an autonomous entity. From 1988 to 2001, Saipem invested more than 1.2 Billion Euros to enhance its fleet of offshore construction barges and offshore drilling units. This move catapulted the company to the industry’s forefront of technological innovation and operational efficiency. Now Saipem enjoys a superior competitive position in services focusing in remote areas, deep-water environments and gas-related projects. Over the years, Saipem has demonstrated its staunch dedication to safety. The company has a state-of-the-art Health & Safety Executive Management System, and its Quality Management System has been granted special recognition.

OFFSHORE

Peter Kiewit Sons’, Inc.www.kiewit.com

Peter Kiewit Sons’, Inc. was started in 1884, when Peter and Andrew Kiewit formed Kiewit Brothers. The two sons of a brick maker began the company as an Omaha masonry contracting business. Peter Kiewit’s youngest son (also named Peter)

developed his father’s company into a major national contractor. Today, Kiewit is the seventh-largest construction firm and one of the largest employee-owned firms in North America.

Weeks Marine Inc.www.weeksmarine.com

Founded in 1919 as Weeks Stevedoring Company, Weeks Marine Inc. has grown into one of the leading marine-construction and dredging organizations in the United States and Canada. Today, the firm’s capabilities include dredging, construction, marine transportation, heavy lift and salvage, and equipment charter and rental. The firm has an impressive track record of efficiency and safety.

Sandwell Engineering Inc.www.sandwell.com

Founded in 1948 in Vancouver, Canada, Sandwell made its name in the international pulp and paper industry, merging in 1986 with a long-time affiliate Swan Wooster Engineering Co. Ltd. Since its inception in 1925, Swan Wooster had built a world-class reputation in the field of infrastructure development. The merger enabled Sandwell to combine its industrial and infrastructure expertise to provide clients with the integrated “total system” service fit for the era of global trade.

Aerial photo of the Canaport™ LNGLP sitefully under construction. (July 2006)

At Canaport™ LNGLP the safety of our employees and our neighbours is very important to us as we construct the LNG project and will continue to be important when the project moves from construction to operation. We recognize that what makes Canaport™ LNGLP safe is not just the equipment we use, but, rather the people who use it and the processes we implement to ensure the strictest adherence to safety standards. Once employees have finished their training, they are rigorously tested before they are allowed to work. Safety personnel constantly monitor the site to identify and correct any deviation from operating standards. To ensure full coverage of the site, we require the presence of at least one safety professional for every 50 on-site workers.

The responsibilities of safety personnel include job-hazard analysis, proper equipment certification and storage, safety signage/communications, toolbox meetings and incident reporting. Overall, they help ensure that each contractor adheres to mandated safety plans. Canaport™ LNGLP has also taken several steps to ensure that the residents of the neighboring community remain safe. With the increased traffic volume on Redhead Road, Canaport™ LNGLP has increased its communication with truck drivers and the local police department to encourage adherence to speed limits and safe driving practices. Furthermore, we’ve hosted our first Safety Day to educate the public, and especially school children.

Safety Review:

Connections

Canaport Connections is our newsletter for neighbours of Canaport. If you have suggestions or commentsabout Canaport Connections, please contact Carolyn Van der Veen at (506) 658-6250 (ext 7112) or cvanderv@canaportlng.com

COPYRIGHT 2006 CANAPORTTM LNG LIMITED PARTNERSHIP

I S SUE #2 , 2006

CanaportTM LNGLP Team Member Profile:

Spanish-born Adolfo José Azcarrága Gomis has been a project manager at Repsol YPF since 2001. During this tenure, he has worked as project manager on numerous LNG projects. He also

worked on a pipeline compressor station, an oil pipeline, and booster pumping station. As the Engineering and Construction Manager at Canaport™ LNGLP, Adolfo brings a wealth of experience to his position.

Academically and p r o f e s s i o n a l l y, Adolfo has been involved in energy-related industries since 1990, when

he enrolled at the Polytechnic University of Valencia and received training at the British Petroleum (then Petromed) refinery in Castellón, where he developed models for short circuits at different levels of high voltage lines. Adolfo graduated in the top fifth of his University class with a specialty in electrical engineering.

In 1992, Adolfo completed a major graduation project for Ford Motor Company in Spain. He executed the electrical design that incorporated a 6.3 Kilovolt generator and its connection to the electrical grid for a gas turbine.

More recently, Adolfo supplemented his technical education with a Master in Business Administration degree from Institute de Estudios Superiores de la Empresa (IESE) in Madrid.

Before he joined Repsol YPF in 2001, Adolfo spent more than 8 years at Isolux-Wat , a general construction company in Spain. Adolfo was responsible for the company’s gas operations, including the coordination and execution of all gas construction contracts, such as high-pressure gas pipelines, pressure regulation stations, domestic and industrial gas facilities. Adolfo also worked for a year as a Commercial Manager at Gas Natural.

When asked about his work, Adolfo says that what he enjoys most are the people. And at Canaport™ LNGLP, he has found that everyone is focused on completing the project. There are few places he’s found where everyone is so focused on the specific goal in front of them.

Adolfo has a wife and three children, two sons and a daughter. Adolfo and his family have recently relocated to Saint John from Madrid.

Adolfo José Azcarrága Gomis – Repsol YPFHow Will the CanaportTM LNGLP Jetty Work?An important part of Canaport™ LNGLP’s development is a jetty that can receive large ships carrying LNG from places such as Trinidad and Tobago. LNG ships will come alongside the jetty with the assistance of specialized tugboats. Once a ship is alongside the jetty, several lines are secured from the ship to the jetty mooring hooks to hold the ship in place. (The mooring hooks are equipped with emergency breakaway devices that allow the LNG unloading arms to quickly detach from the ship in unsafe conditions.) After safety checks are completed, the unloading arms are connected to the ship and the LNG is pumped into a pipeline that takes the liquid gas to LNG storage tanks on shore. The ships will typically unload their LNG cargoes within 24 hours of arrival.

The Canaport™ LNGLP jetty is a high-tech piece of in-ocean equipment designed to accommodate a wide range of demanding technical and environmental variables such as wind and waves, temperature patterns, freezing rain, extreme tides, ship impact, ship weather limits, water currents, existing geology, earthquakes and other factors. The jetty is designed for a wide range of LNG ship sizes, from the smaller 65,000 cubic meter ships to the largest new designs capable of transporting about 266,000 cubic meters.

The jetty will be constructed using pre-fabricated “jacket” structures, which are set into the water and secured to the sea floor with a piling system. The jackets are interconnected with steel and concrete decks to form a T shape about 300 meters from shore. The structure will be 400 meters long and 6 to 10 meters wide.

Kiewit-Weeks-Sandwell (KWS) was awarded the EPC contract to design and construct the jetty. We expect to complete the engineering design of the jetty in 2006. Fabrication of the jackets and topsides will start in late 2006 and should be completed by mid 2007. Installation will start in the spring of 2007 and will be completed in the fall of 2007. The onshore EPC contractor, SNC-CENMC, will install the piping and other systems on the jetty prior to plant start-up in late 2008.

The operations of the jetty will be governed by a policy and procedures manual that details procedures and standards. The manual will be based on input from the Saint John Harbour Pilots, Port of Saint John, Transport Canada and others. The manual will reflect best industry practises set by Society of International Gas Tanker & Terminal Operators (SIGTTO; www.sigtto.org) and other organizations. Some expected guidelines are: · Weather limits for docking and staying along side the jetty· Safety checks prior to discharge · Number, type and size of tugs required for specific sizes of ships · List of ships compatible (allowed to dock) with the jetty · Trained pilots will be used to berth the ships

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Adolfo José Azcarrága Gomis, Onshore Construction Engineering Managerfor Canaport™ LNGLP, overlooking the construction site on July 2006

Adolfo, his wife and three children will be relocating from Madrid, Spain

at the end of August.

Tim RyanDennis James GriffinJean ThompsonRoger Hunter Dianna BartonRick TurnerClaude MacKinnon

Gordon DalzellWarren LongJennifer ParkerDavid PetersonJan JohnstonMr. Rainer MalcharekFraser Forsythe

Jeff ClineStuart ArmstrongTeresa DeblyBeth RoyCaptain Kevin QuinnKathy RogersDavid Thompson

Glenn GriffinDawn DaigleDonald J. Melanson Elsie C SmithDwain LyttleYvonne PerryCouncillor Ivan Court

Carol ArmstrongPeter ShermanAlice BrownPatrick BruceCarolyn Van der Veen

CanaportTM LNGLP Community Environmental Liaison Committee (as of June 30, 2006)

CanaportTM LNGLP Team Member Profile:

Spanish-born Adolfo José Azcarrága Gomis has been a project manager at Repsol YPF since 2001. During this tenure, he has worked as project manager on numerous LNG projects. He also

worked on a pipeline compressor station, an oil pipeline, and booster pumping station. As the Engineering and Construction Manager at Canaport™ LNGLP, Adolfo brings a wealth of experience to his position.

Academically and p r o f e s s i o n a l l y, Adolfo has been involved in energy-related industries since 1990, when

he enrolled at the Polytechnic University of Valencia and received training at the British Petroleum (then Petromed) refinery in Castellón, where he developed models for short circuits at different levels of high voltage lines. Adolfo graduated in the top fifth of his University class with a specialty in electrical engineering.

In 1992, Adolfo completed a major graduation project for Ford Motor Company in Spain. He executed the electrical design that incorporated a 6.3 Kilovolt generator and its connection to the electrical grid for a gas turbine.

More recently, Adolfo supplemented his technical education with a Master in Business Administration degree from Institute de Estudios Superiores de la Empresa (IESE) in Madrid.

Before he joined Repsol YPF in 2001, Adolfo spent more than 8 years at Isolux-Wat , a general construction company in Spain. Adolfo was responsible for the company’s gas operations, including the coordination and execution of all gas construction contracts, such as high-pressure gas pipelines, pressure regulation stations, domestic and industrial gas facilities. Adolfo also worked for a year as a Commercial Manager at Gas Natural.

When asked about his work, Adolfo says that what he enjoys most are the people. And at Canaport™ LNGLP, he has found that everyone is focused on completing the project. There are few places he’s found where everyone is so focused on the specific goal in front of them.

Adolfo has a wife and three children, two sons and a daughter. Adolfo and his family have recently relocated to Saint John from Madrid.

Adolfo José Azcarrága Gomis – Repsol YPFHow Will the CanaportTM LNGLP Jetty Work?An important part of Canaport™ LNGLP’s development is a jetty that can receive large ships carrying LNG from places such as Trinidad and Tobago. LNG ships will come alongside the jetty with the assistance of specialized tugboats. Once a ship is alongside the jetty, several lines are secured from the ship to the jetty mooring hooks to hold the ship in place. (The mooring hooks are equipped with emergency breakaway devices that allow the LNG unloading arms to quickly detach from the ship in unsafe conditions.) After safety checks are completed, the unloading arms are connected to the ship and the LNG is pumped into a pipeline that takes the liquid gas to LNG storage tanks on shore. The ships will typically unload their LNG cargoes within 24 hours of arrival.

The Canaport™ LNGLP jetty is a high-tech piece of in-ocean equipment designed to accommodate a wide range of demanding technical and environmental variables such as wind and waves, temperature patterns, freezing rain, extreme tides, ship impact, ship weather limits, water currents, existing geology, earthquakes and other factors. The jetty is designed for a wide range of LNG ship sizes, from the smaller 65,000 cubic meter ships to the largest new designs capable of transporting about 266,000 cubic meters.

The jetty will be constructed using pre-fabricated “jacket” structures, which are set into the water and secured to the sea floor with a piling system. The jackets are interconnected with steel and concrete decks to form a T shape about 300 meters from shore. The structure will be 400 meters long and 6 to 10 meters wide.

Kiewit-Weeks-Sandwell (KWS) was awarded the EPC contract to design and construct the jetty. We expect to complete the engineering design of the jetty in 2006. Fabrication of the jackets and topsides will start in late 2006 and should be completed by mid 2007. Installation will start in the spring of 2007 and will be completed in the fall of 2007. The onshore EPC contractor, SNC-CENMC, will install the piping and other systems on the jetty prior to plant start-up in late 2008.

The operations of the jetty will be governed by a policy and procedures manual that details procedures and standards. The manual will be based on input from the Saint John Harbour Pilots, Port of Saint John, Transport Canada and others. The manual will reflect best industry practises set by Society of International Gas Tanker & Terminal Operators (SIGTTO; www.sigtto.org) and other organizations. Some expected guidelines are: · Weather limits for docking and staying along side the jetty· Safety checks prior to discharge · Number, type and size of tugs required for specific sizes of ships · List of ships compatible (allowed to dock) with the jetty · Trained pilots will be used to berth the ships

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Adolfo José Azcarrága Gomis, Onshore Construction Engineering Managerfor Canaport™ LNGLP, overlooking the construction site on July 2006

Adolfo, his wife and three children will be relocating from Madrid, Spain

at the end of August.

Tim RyanDennis James GriffinJean ThompsonRoger Hunter Dianna BartonRick TurnerClaude MacKinnon

Gordon DalzellWarren LongJennifer ParkerDavid PetersonJan JohnstonMr. Rainer MalcharekFraser Forsythe

Jeff ClineStuart ArmstrongTeresa DeblyBeth RoyCaptain Kevin QuinnKathy RogersDavid Thompson

Glenn GriffinDawn DaigleDonald J. Melanson Elsie C SmithDwain LyttleYvonne PerryCouncillor Ivan Court

Carol ArmstrongPeter ShermanAlice BrownPatrick BruceCarolyn Van der Veen

CanaportTM LNGLP Community Environmental Liaison Committee (as of June 30, 2006)

Project Progress

Most members of the Saint John community know about the two major parts of Canaport™ LNGLP’s development — onshore and offshore.

The offshore component consists of the jetty, a metal support structure with a concrete deck that allows LNG ships to dock and unload LNG via pipes that carry it to the onshore tanks. Onshore components consist of the LNG tanks and the regasification equipment that will convert the LNG to a gaseous state, so it can be piped underground to customers as natural gas.

The onshore and offshore projects are both proceeding according to plan. For the offshore project, we’ve successfully installed 49 4-foot-diameter piles that will allow installation of the steel jetty structures that rest on the ocean floor and support the pier deck. This installation was completed in August.

For the onshore portion, we are finishing site preparation and the leveling of the ground to make sure that we have a flat and firm surface for each LNG tank. We are removing the remaining loose gravel and installing cement foundations, drainage systems and roadways. At the same time, many design aspects of the engineering are underway in locations such as Montreal and as far away as India. By Christmas, the tank base pads will be complete for the LNG tank construction crews to begin tank walls in early 2007.

In May 2006, we announced that we awarded the Engineering, Procurement, Construction (EPC) contract for onshore facilities to SNC-CENMC, G.P., a partnership between the engineering firms of SNC-Lavalin of Montreal, Quebec, and Saipem S.p.A. of Milan, Italy. This partnership was also tasked with full procurement and supervisory responsibilities for the onshore portion of the project. The Kiewit-Weeks-Sandwell Partnership (KWS) was awarded the EPC contract for the offshore facilities. KWS is a consortium of Peter Kiewit Sons Co of St. John’s, Newfoundland, Weeks Marine of Cranford, New Jersey, and Sandwell Engineering of Vancouver, British Columbia.

Besides the site’s onshore and offshore projects, there is also the construction of Mispec Road, By Gulf Operators, the new road that will lead into and out of the Red Head area and the Canaport™ LNGLP site by-passing Red Head Road. This construction too is on schedule and will be ready for traffic by the end of the year, with paving of the public segment scheduled for the 2007 construction season.

THE CONSTRUCTION IS PROCEEDING ON SCHEDULE

Meet the ContractorsONSHORE

SNC-Lavalin Inc.www.snclavalin.com

SNC-Lavalin (TSX: SNC) was founded in Montreal in 1911 and built up a reputation for civil engineering and power development throughout Canada. By the early 1960s, SNC-

Lavalin was also working on projects internationally, laying the foundation for its multicultural network of offices now established right across Canada, including in New Brunswick, and in 30 other countries around the world. Today, SNC-Lavalin is Canada’s largest engineering and construction firm and is currently working on projects from coast to coast, and in over 100 countries. SNC-Lavalin’s approximately 12,000 employees are dedicated to maintaining the highest standards of health and safety, while using the latest design and construction technology to provide engineering, procurement, construction, project management, operations and maintenance and financing services for projects in the power, chemicals and petroleum, infrastructure and environment, mass transit, mining and metallurgy, pharmaceuticals and biotechnology, agrifood and industrial sectors, as well as in defence programs.

CENMC, G.P.www.saipem.eni.it

CENMC is a part of the Saipem S.p.A. group. Saipem began operations in the 1950s as an onshore pipelay, plant construction, and drilling company. In 1969, it broke from the group and became an autonomous entity. From 1988 to 2001, Saipem invested more than 1.2 Billion Euros to enhance its fleet of offshore construction barges and offshore drilling units. This move catapulted the company to the industry’s forefront of technological innovation and operational efficiency. Now Saipem enjoys a superior competitive position in services focusing in remote areas, deep-water environments and gas-related projects. Over the years, Saipem has demonstrated its staunch dedication to safety. The company has a state-of-the-art Health & Safety Executive Management System, and its Quality Management System has been granted special recognition.

OFFSHORE

Peter Kiewit Sons’, Inc.www.kiewit.com

Peter Kiewit Sons’, Inc. was started in 1884, when Peter and Andrew Kiewit formed Kiewit Brothers. The two sons of a brick maker began the company as an Omaha masonry contracting business. Peter Kiewit’s youngest son (also named Peter)

developed his father’s company into a major national contractor. Today, Kiewit is the seventh-largest construction firm and one of the largest employee-owned firms in North America.

Weeks Marine Inc.www.weeksmarine.com

Founded in 1919 as Weeks Stevedoring Company, Weeks Marine Inc. has grown into one of the leading marine-construction and dredging organizations in the United States and Canada. Today, the firm’s capabilities include dredging, construction, marine transportation, heavy lift and salvage, and equipment charter and rental. The firm has an impressive track record of efficiency and safety.

Sandwell Engineering Inc.www.sandwell.com

Founded in 1948 in Vancouver, Canada, Sandwell made its name in the international pulp and paper industry, merging in 1986 with a long-time affiliate Swan Wooster Engineering Co. Ltd. Since its inception in 1925, Swan Wooster had built a world-class reputation in the field of infrastructure development. The merger enabled Sandwell to combine its industrial and infrastructure expertise to provide clients with the integrated “total system” service fit for the era of global trade.

Aerial photo of the Canaport™ LNGLP sitefully under construction. (July 2006)

At Canaport™ LNGLP the safety of our employees and our neighbours is very important to us as we construct the LNG project and will continue to be important when the project moves from construction to operation. We recognize that what makes Canaport™ LNGLP safe is not just the equipment we use, but, rather the people who use it and the processes we implement to ensure the strictest adherence to safety standards. Once employees have finished their training, they are rigorously tested before they are allowed to work. Safety personnel constantly monitor the site to identify and correct any deviation from operating standards. To ensure full coverage of the site, we require the presence of at least one safety professional for every 50 on-site workers.

The responsibilities of safety personnel include job-hazard analysis, proper equipment certification and storage, safety signage/communications, toolbox meetings and incident reporting. Overall, they help ensure that each contractor adheres to mandated safety plans. Canaport™ LNGLP has also taken several steps to ensure that the residents of the neighboring community remain safe. With the increased traffic volume on Redhead Road, Canaport™ LNGLP has increased its communication with truck drivers and the local police department to encourage adherence to speed limits and safe driving practices. Furthermore, we’ve hosted our first Safety Day to educate the public, and especially school children.

Safety Review:

Connections

Canaport Connections is our newsletter for neighbours of Canaport. If you have suggestions or commentsabout Canaport Connections, please contact Carolyn Van der Veen at (506) 658-6250 (ext 7112) or CVANDERV@repsolypf.com

COPYRIGHT 2006 CANAPORTTM LNG LIMITED PARTNERSHIP

I S SUE #2 , 2006