December 02, 1997

SaskEnergy International To Lead Major Natural Gas
Study In Uruguay

Deputy Premier and Crown Investments Corporation Minister Dwain Lingenfelter today announced that SaskEnergy International has received a consulting contract to lead a major natural gas distribution feasibility study for the Government of Uruguay.

"The Government of Uruguay asked SaskEnergy to consider managing this rural gas study because of Saskatchewan's extensive existing rural and urban natural gas distribution network," Lingenfelter said after meeting with officials of the government's Ministry of Industry, Energy and Mines.

SaskEnergy International is carrying out the study in co-operation with the Uruguayan Ministry of Industry, Energy and Mines. The study will identify the technical and cost-of-service issues involved in providing natural gas to customers throughout Uruguay, the minister said. The Canadian International Development Agency's Industrial Co-operation Program (CIDA Inc.) is contributing approximately $380,000 to conduct the feasibility study.

CIDA Inc. is the principal international development agency of the Canadian government. CIDA Inc. facilitates projects in partnership with Canadian companies to support the efforts of developing countries.

"SaskEnergy International was selected to perform the Uruguayan Natural Gas Distribution feasibility study in anticipation of the development of an extensive rural and urban gas distribution system in our country," Pedro Antmann, Deputy Minister of the Uruguayan Department of Industry, Energy and Mines, said. "The Government of Uruguay is confident that the feasibility study will provide us with the detailed analysis required to proceed with our natural gas distribution program."

"The development of a distribution network that will provide natural gas to cities ranging in size from 30,000 to 1.5 million is a national priority," Roland Goulet, Canada's Ambassador to Uruguay, said. "I welcome SaskEnergy International's participation in this important natural gas distribution feasibility study."

The SaskEnergy network, the longest in North America, links over 400 cities, towns and villages across Saskatchewan, covering an area exceeding 360,000 square kilometres.

"SaskEnergy International will use the research from this feasibility study to better position itself to compete for and win future international contracts, within Uruguay and elsewhere in Latin America," Lingenfelter said.

A team of about a dozen SaskEnergy employees will be involved in the project.

SaskEnergy International was also awarded a $163,000 contract by the Ministry of Industry, Energy and Mines to provide technical assistance on an acquifer natural gas storage system.

Financing for this project was provided by the Inter-American Development Bank (IADB). The IADB is an international financial institution created in 1959 to help accelerate the socio-economic development of its member countries in Latin America and the Caribbean.

For more information, contact:

Ron Podbielski
Acting Director, Corporate Affairs
Phone: (306) 777-9432

Roland Goulet
Canadian Ambassador to SaskEnergy, Uruguay
Montevideo
Phone: 598-2-92-2030

Pedro Antmann
D.M. of Industry, Energy and Mines
Government of Uruguay
Montevideo
Phone: 598-2-90-8422