Combined cycle gas plant Sherritt's power facilities

Sherritt holds an indirect one-third interest in Energas, a joint venture established to generate electricity for sale to the Cuban national electrical grid. The remaining two-thirds interest in Energas is held equally by two Cuban agencies, Union Electrica (‘‘UNE'') and Cubapetroleo ("CUPET").

The Corporation has financed, constructed and commissioned each of the integrated gas treatment and power generation facilities located near the Varadero, Boca de Jaruco, and Puerto Escondido oil fields.

These facilities currently have a combined capacity of 356 MW. Energas operates the facilities which process raw gas that is then used to generate electricity for delivery and sale to the Cuban national electrical grid.

Varadero

The Varadero facility is located approximately 140 km east of Havana. The facility consists of two integrated raw gas processing plants, three gas turbines and associated electric generators, a heat exchange system for generating high-pressure steam, and a steam turbine and associated electric generator. In addition, the Varadero site includes an electrical substation and transformers, to facilitate connection of the facility to the Cuban national grid, and an integrated maintenance and administration facility. Aggregate net power capacity of this facility is approximately 193 MW.

Boca de Jaruco and Puerto Escondido

The Boca de Jaruco facility is located 50 kilometres east of Havana. The site initially consisted of a sour gas processing plant, one gas turbine and an associated electric generator with a net power capacity of 33 MW. The site also includes an electrical substation, a transformer to facilitate connection of the facility to the Cuban national grid and an administration facility. The facility commenced operation in August of 1999.

The 85 MW Phase 6 expansion of the Boca de Jaruco facilities completed in 2006 included the installation of two additional gas turbines and associated electric generators at the Boca de Jaruco plant site with a net power capacity of 65 MW and a third gas turbine and associated electric generator with a net power capacity of 20 MW located at a new plant site in the Puerto Escondido oil field. This phase of the expansion also included the installation of sour gas processing facilities at the Puerto Escondido plant.

The Phase 7 expansion of the Boca de Jaruco facilities completed in 2007 included the installation of two additional gas turbines and associated electric generators with a net power capacity of 65 MW.