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NOVA CORPORATION OF ALBERTA ANNOUNCES LETTERS OF CREDIT ARRANGED

NOVA CORPORATION OF ALBERTA ANNOUNCES LETTERS OF CREDIT ARRANGED
 CALGARY, Alberta, Jan. 15 /PRNewswire/ -- NOVA Corporation of Alberta (NYSE: NVA, Toronto, Montreal: NVA) announced today irrevocable letters of credit are arranged to cover initial costs related to building NOVA facilities for both the proposed Pacific Gas Transmission and the Altamont pipeline projects to the California market.
 Under its mandate to provide transportation service on a non-discriminatory basis, NOVA is required to design and construct additional facilities valued at more than $800 million to meet the service requirements for both projects. To assure the Nov. 1, 1993, in-service date, NOVA must undertake large financial commitments for fabrication and delivery of equipment.
 As a result, NOVA requested irrevocable letters of credit from customers who have executed transportation agreements for delivery service to support the next phase of engineering design and procurement activity. Initial letters of credit will cover commitments expected to be incurred during the first four months of 1992. The next installment, approximately $190 million for both projects, is due May 1, 1992.
 "Notwithstanding the present position of both project sponsors, NOVA does not expect both projects to proceed within the Nov. 1, 1993 time frame. NOVA must therefore alleviate the risk of incurring costs which may not be recoverable other than from participants in these projects," said B. W. Simpson, president and chief operating officer of NOVA's Alberta Gas Transmission Division.
 NOVA is a widely held company operating internationally from headquarters in Calgary. NOVA builds its future on pipelines, and the manufacturing and marketing of chemicals processed primarily from Alberta natural resources.
 -0- 1/15/92
 /CONTACT: B.W. Simpson, AGTD president and chief operating officer of NOVA Corporation of Alberta, 403-290-7640/
 (NVA) CO: NOVA Corporation of Alberta ST: Alberta IN: OIL SU:


DM -- LA018 -- 0071 01/15/92 14:15 EST
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Publication:PR Newswire
Date:Jan 15, 1992
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