HALIFAX: The company behind a proposed liquefied natural gas (LNG) project in Goldboro is moving ahead with plans to supply their product to foreign markets.

On May 7, Pieridae Energy announced it has entered into a term sheet to negotiate a binding sale and purchase agreement to supply Canadian LNG to Europe from the proposed Goldboro facility.

Mark Brown, director of project development for Pieridae Energy, said the Goldboro project is permitted to export ten million tonnes per annum of LNG. The company had previously entered into a binding 20 year agreement to sell five million tonnes from the facility’s first train to Uniper SE, Germany’s largest utility.

“This is our second sale of LNG to a European utility,” said Brown. “To be able to sell up to your permitted capacity is a good thing because it generally, on a per unit basis, brings down your capital costs, so it’s a good thing to continue to sell this second train.”

Under the new agreement, the utility will purchase up to 1 million tonnes of LNG per annum. The contract is scheduled to begin at the start of commercial deliveries, which is estimated to take place in the first quarter of 2023, and will last for a 10-year period.

Pieridae is the parent company behind the proposed Goldboro LNG project, which would consist of a processing plant and facilities for the storage and export of LNG, including a marine jetty.

Pieridae Energy has also applied for a construction permit with the Nova Scotia Utility and Review Board to begin work on the proposed facility. An open house on the project was held last week at the Goldboro Interpretive Centre. Brown said the public has one month to issue their concerns before the NSUARB makes its decision on whether to approve the permit.

Brown said there is additional work to be done before the company can move forward.

“We need to finalize some supply arrangements and also finalize the pipeline transportation arrangements, as well as some financing,” said Brown. “We hope that this will all be in place hopefully sometime this summer as a soft final investment decision, with the hard final investment decision coming in the first quarter of 2019.”

Guysborough Warden Vernon Pitts says he is pleased to see the project moving forward.

“So far, to date, everything is going well. They’re progressing ahead,” said Pitts. “The property has been cleared of vegetation, so they can basically start any time once they have the permit.”

Pitt added he believes the project will have significant benefits for the community.

“Our residents are acclimatized to gas. We’ve had Sable Offshore Energy Project now for 20 years. It was the first natural gas project in Atlantic Canada, and it was in Goldboro,” he said. “We have people who are residents out working around the world, up north, and out west, and they’re looking forward to this.”