CALGARY, ALTA: Fueled on the expectations of a 10-fold increase in its net operating income, Pieridae Energy Ltd. is planning to invest in its proposed Goldboro LNG facility in a Final Investment Decision (FID).
On December 12, Pieridae announced a pre-FID capital budget of $32 million for 2020, along with a $16 million development expense budget for their LNG project in Guysborough County.
The updated corporate guidance for 2020 focuses on increasing net operating income via: operating efficiencies; increasing production with the recent, previously disclosed acquisition of key Alberta Foothills assets; lower per barrel operating costs; a higher capital budget; and a development expense budget for Goldboro as they move toward FID for the project.
“We are guiding to an increase of up to 10 times our NOI from pre-acquisition levels which further accentuates the transformational nature and assertiveness of the Foothills assets acquisition,” Pieridae CEO Alfred Soresen said. “A doubling or close to tripling of daily production speaks to the value of the acquisition and provides us with the majority of the gas resource necessary to supply train 1 at Goldboro.”
Pieridae now faces a deadline of September 30, 2020 for FID – that deadline was extended earlier this year from September 30, 2019. The current timeline targets commercial deliveries to start in 2024.
The company expects their net operating income increase to $80 million – $110 million in 2020, something otherwise that would have been approximately $10 million, if not for the acquisition of Shell Canada’s midstream and upstream assets in the Alberta Foothills.
“It’s Pieridae’s advantage of being an integrated LNG company and not just a gas producer and processor that sets us apart from our peers,” Sorensen said. “Delivering on our stated goals of completing a fixed price contract with KBR and finalizing project financing puts us in a position to make a final investment decision for Goldboro LNG next year. We continue to make progress toward that goal.”