Goldboro LNG project approved by UARB

GOLDBORO: After overcoming every regulatory hurdle placed in front of them,  Pieridae Energy Ltd.  has been greenlit by the Nova Scotia Utility and Review Board (UARB) to construct their Liquefied Natural Gas (LNG) facility in Guysborough County.

Pieridae’s LNG facility, projected to cost upwards of $10 billion and be one of the country’s first natural gas export facilities, now has to finalize supply and transportation issues before making a final investment decision.

In late August, Pieridae completed a merger with Alberta-based natural gas producer  Ikkuma Resources Corp.  securing a gas supply that would feedstock the Goldboro LNG.

In their decision released on October 31, the UARB said they will issue the permit to construct the facility in Goldboro, subject to a set of conditions in addition to the conditions provided by  Lloyd’s Register , the UARB’s certifying authority and consulting service.

In a statement on their Web site, Pieridae welcomed the UARB’s decision and says it will now proceed diligently to satisfy each of the associated conditions of the permit and will commence construction of the Goldboro LNG facility as soon as a positive financial investment decision has been taken.

In anticipation of the commencement of construction, Pieridae has hired  Hatch Ltd.  to act as its engineering advisor and also remains committed to engaging with First Nations.

“It is appropriate to formally recognize the close cultural and historical relationship between the Mi’kmaq people in Nova Scotia,” said Pieridae CEO Alfred Sorensen in the release. “And their traditional territory and the resources of the province while acknowledging that the Mi’kmaq have not historically ceded lands or resources through treaty or other formal agreement.”

Mark Brown, vice-president of business development said the company expects to make a final investment decision by June.

“The receipt of the permit to construct represents a significant step in advancing the project,” he said. “We are pleased as it symbolizes completion of a critical milestone in our drive to a final investment decision.”

Pieridae has already secured $4.5 billion in loan guarantees from the German government, including $3 billion to construct the plant that would in return guarantee Germany a portion of the exported LNG. German utility  Uniper S.E.  has already made a 20-year commitment to buy at least 50 per cent of the total capacity for the terminal.

In the UARB’s decision it cited a large base of public support for the project and stated it received 197 letters of comment from the public, while only seven has expressed concerns including green house gas emissions, explosions, plant safeguards and traffic.

The UARB said many of the issues raised by the public were not within their mandate and the issues would be addressed during the design and construction phases. Along with  Lloyd’s Register , they will continue to monitor those phases of the project.

Before the facility can become operational, Pieridae will be required to file an application for a license to operate.