Pieridae Energy engages KBR for Goldboro LNG

CALGARY, A.B.: A respected global engineering firm has been engaged by Pieridae Energy Ltd. to perform a review of their Front-End Engineering and Design (FEED) study for the proposed Goldboro LNG facility.

Kellogg Brown & Root Limited (KBR) will examine changes to initial plans for Pieridae’s $10 billion Goldboro LNG project, which is capable of exporting up to 1.4 billion cubic feet per day.

KBR will also conduct an open-book estimate necessary for entering into a lump sum turnkey Engineering, Procurement and Construction (EPC) contract. They are expected to carry out the work within an 11-month period.

Being active in the LNG industry for more than four decades, KBR remains committed to boost global LNG production for environmental reasons and has delivered about one-third of the world’s current LNG production capacity.

In a media release earlier this month, Pieridae indicated the company anticipates signing a major contract “in the coming months” with KBR and expects to start construction activities in 2019 and the first gas shipped overseas to meet the expected global LNG shortfall in 2023-24.

Alfred Sorensen, Pieridae’s chief executive officer, said in the release they are extremely pleased with this development as it marks a major step in getting the Goldboro LNG facility built.

“This is Eastern Canada’s only fully permitted LNG facility with gas supplies, a pipeline route and an anchor customer. Goldboro LNG will create thousands of Canadian jobs and establish a solid global market for Canadian natural gas for years to come,” he said. “With the terms of an EPC contract due shortly, Pieridae will have met all of the criteria needed to move to a final investment decision on Goldboro.”

Sorensen highlighted this initiative will reinvigorate dormant natural gas reserves in southern Alberta, and in Nova Scotia the Goldboro LNG facility will be the largest project ever built, employing 3,500 men and women during construction, 30 per cent of the province’s entire unionized workforce.

Poised to be the first LNG company to market in Canada, Pieridae’s Goldboro LNG facility will produce 10 million tonnes per year of LNG and will supply much needed natural gas to Europe, helping countries like Germany implement its planned transition to a low-carbon, nuclear and coal-free economy, while diversifying its sources of natural gas supply currently dominated by Russia.

Pieridae has signed a 20-year sales agreement with German utility Uniper worth approximately $35 billion, the largest export contract in Canadian history and the German government is supportive of the project, declaring it eligible in principle for up to US$4.5 billion in loan guarantees.

Recently, it was announced a benefits agreement had been signed with the Assembly of Nova Scotia Mi’kmaq Chiefs. The agreement means the Mi’kmaq will benefit economically from the development, construction and operation of the facility.

KBR has extensive global experience in building large-scale projects such as Goldboro and has been involved in virtually every proposed LNG project in Canada. The company recently completed the Gorgon LNG project in Australia, which is very similar in size and scope to Goldboro.