HALIFAX: A shuttered West coast LNG project led to renewed interest in a local LNG project.
Paul MacLean, strategic and regulatory affairs advisor for Bear Head LNG, said Liquefied Natural Gas Limited, the parent company behind Bear Head LNG, is comfortable with the current market conditions despite news of the recent decision by Pacific NorthWest LNG to not move forward, following a review of the project by its partners.
“We expect the oversupply that we’re currently experiencing in the LNG market will sort itself out in the 2022-2023 timeframe,” he said. “Since the announcement of the cancellation of [the Pacific NorthWest’s project] we’ve experienced significant renewed interest in the Bear Head project as an opportunity for Western Canadian gas players to monetize their gas.”
MacLean said the company hasn’t signed any agreements yet but they are “continuing the dialogue and we’re continuing discussions with those players and we’re very optimistic about the outcome.”
When asked if Pacific NorthWest’s shuttering is good or bad news for Bear Head, MacLean said it is important to note his company does not relish the fact another project is not moving forward, noting it means $36 billion in investment is not going into the Canadian LNG industry.
“At the same time, the cancellation of the project has resulted in increased interest in our project and it has really driven a lot of discussion about opportunities to monetize western Canadian natural gas,” he said. “We have a very well defined business plan that we developed and we’re executing on that business plan so we fully intend to move forward with the project and we’re still fully committed to the Strait of Canso region.”
Bear Head LNG is a proposed LNG export terminal designed with an expected total production capacity of up to 8 million tonnes per annum (mtpa) of LNG. LNGL is also behind the Bear Paw Pipeline project, which is a proposed 62.5 km natural gas pipeline from Goldboro to the proposed Bear Head site in Point Tupper.