STRAIT AREA: Two liquified natural gas (LNG) projects earmarked for this region underwent changes recently.
The company proposing to build an LNG facility in Guysborough County is delaying making its Final Investment Decision (FID) until after the deadline.
Pieridae Energy Limited indicated last summer they would be making their determination before the first quarter of 2020 – however in the company’s latest quarterly financial report – they have decided to delay their decision because of the global pandemic.
“As a result of a depressed market and COVID-19 impacts, FID for the project will be delayed beyond September 30,” said Alfred Sorensen, CEO. “A further announcement will be made once COVID-19 conditions improve and markets stabilize.”
Poised to be the first Canadian company to market LNG off the east coast to the globe, Pieridae’s Goldboro LNG terminal has the potential to compete with the increased presence of LNG facilities along the U.S. Gulf Coast, with a shorter distance to Europe, which can help reduce shipping costs.
It is expected to take 56-months to build the $10 billion Goldboro LNG project which can produce 10 million tonnes per year of LNG and supply gas to Europe by signing a 20-year sales agreement with German utility Uniper Global Commodities worth approximately $35 billion.
In Point Tupper, Richmond County, an ownership change of the proposed Bear Head LNG facility has been officially withdrawn.
The current owner, Australia-based Liquified Natural Gas Limited (LNGL) announced in February it had received a takeover offer from a Singapore-based firm LNG9.
Under the terms of the takeover, LNG9 would acquire 100 per cent of the outstanding shares of LNGL and potentially take the company private, which was recommended by LNGL’s board of directors.
However, LNGL says the takeover bid has since been withdrawn for now but LNG9 remain interested in acquiring all or a material part of its assets. The two companies will continue to work towards a mutually acceptable deal.
Bear Head LNG renewed its permit to construct the proposed facility late last year with provincial regulators. The Nova Scotia Utility and Review Board granted an extension on its permit to construct and it now expires on December 31, 2022.