Irving Oil signs AV Nackawic for CNG

Industrial customers in the Maritimes now have access to trucked natural gas, providing significant energy cost savings

SAINT JOHN, NB, March 5, 2013 /CNW/ - Irving Oil announced today that it has signed an agreement with AV Nackawic, making them Irving Oil's newest industrial customer, and the second in New Brunswick to receive compressed natural gas (CNG) delivered by trucks to fuel their operations. Yesterday, Irving Oil announced it had signed a similar agreement with McCain Foods.

Irving Oil's agreements with AV Group's two pulp mills and the signing of McCain Foods earlier this week makes it the leading provider of compressed natural gas in the Maritimes.

"We are extremely proud to have AV Nackawic as our newest customer for truck deliveries of compressed natural gas," said Daren Gillis, General Manager of Irving Energy. "Delivered natural gas represents an energy alternative to those without access to pipelines. Clearly the industrial appetite for lower-cost delivered natural gas exists throughout the Maritimes, and that's why we also have undertaken new CNG initiatives in Nova Scotia and PEI to fulfill that need."

Irving Oil announced last year that we would be delivering compressed natural gas to industrial customers in Nova Scotia, PEI and New Brunswick in 2013.

Al Hitzroth, President and CEO of the AV Group, said "We are pleased to enter into an agreement with Irving Oil to have them provide compressed natural gas to our pulp mills located in Nackawic and Atholville. Energy is such a significant cost driver for our business, having the option to switch fuels to take advantage of pricing volatility, which will enable us to reduce costs and make our mills more sustainable in the long run."

Irving Oil has been developing its truck delivered CNG business on several fronts in the Maritimes. The company's natural gas compression station in NB is nearing completion and its station in Nova Scotia near the Halifax Airport is expected to be complete later this year helping to serve industrial customers in that province as well as markets in Prince Edward Island and New Brunswick.

About Irving Oil
Irving Oil was founded in 1924 and is a privately owned regional refining and marketing company with a history of long-term partnerships and relationships. Irving Oil operates Canada's largest refinery, in Saint John NB, which is located 65 miles north of the US border and has reached production rates in excess of 300,000 barrels per day. The refinery exports over 80 per cent of its production to the US and accounts for 75 per cent of Canada's gasoline exports to the US and 19 per cent of all US gasoline imports. For more information about Irving Oil, visit www.irvingoil.com.


SOURCE: Irving Oil Operations Ltd.

For further information:

Media contact:    
Carolyn Van der Veen,
Irving Oil
(506) 202-1869     carolyn.vanderveen@irvingoil.com

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