Pieridae moves closer to June decision on Nova Scotia LNG export plant
13/05/2021 13:30
May 13 (Reuters) - Canadian energy company Pieridae Energy
Ltd PEA.V said on Thursday it still expects to make a final
investment decision by June 30 on its proposed Goldboro
liquefied natural gas (LNG) export plant in Nova Scotia.
That would allow the $10 billion project to produce its
first LNG in 2025-2026. urn:newsml:reuters.com:*:nL1N2M82CF
Pieridae is one of several firms to have delayed projects to
build North American LNG export plants as global gas prices
TRNLTTFMc1 JKMc1 fell to their lowest in years in an
oversupplied market in 2019 and then to record lows in 2020
after a coronavirus-induced demand collapse. urn:newsml:reuters.com:*:nL1N2FN1GH
“Goldboro ... is beginning to look like ‘the last one
standing’ with others in North America either being delayed or
canceled outright," Pieridae Chief Executive Alfred Sorensen
said in the company's first-quarter earnings release.
urn:newsml:reuters.com:*:nGNX3pl8Wm
There are currently 12 projects in North America, including
Goldboro, that have said they could make final investment
decisions in 2021, though analysts expect only one or two of
those projects will actually start construction this year.
urn:newsml:reuters.com:*:nL1N2LK27O
Pieridae has a 20-year agreement to sell the LNG from
Goldboro's first liquefaction train - about 5.2 millions tonnes
per annum (MTPA) or 0.68 billion cubic feet per day of natural
gas - to German utility Uniper SE UN01.DE .
The company said engineering firm Bechtel Corp plans to
deliver a fixed-price proposal to build the plant by the end of
May. The project would employ about 3,500 workers during peak
construction. urn:newsml:reuters.com:*:nL1N2GQ1DO
Pieridae said it is committed to making Goldboro, which is
designed to produce about 10.4 MTPA, a net zero emissions
project by 2050.
The group plans to source the gas for the plant from its
production in Alberta and transport it via existing pipelines,
including the Maritimes & Northeast Pipeline from New England to
New Brunswick and Nova Scotia, which passes near the Goldboro
site.
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Pieridae says KBR will not provide fixed-cost contract for Nova
Scotia LNG plant urn:newsml:reuters.com:*:nL2N2EK1H3
KBR to focus on government contracts, quit natural gas, energy
business urn:newsml:reuters.com:*:nL1N2DZ2GA
Pieridae says Bechtel will provide proposal for Nova Scotia LNG
export plant urn:newsml:reuters.com:*:nL1N2GQ1DO
FACTBOX-North American liquefied natural gas export projects
urn:newsml:reuters.com:*:nL1N2LK27O
Pieridae still plans FID on Nova Scotia LNG export plant by late
June urn:newsml:reuters.com:*:nL1N2M82CF
Pieridae Releases Q1 2021 Results urn:newsml:reuters.com:*:nGNX3pl8Wm
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(Reporting by Scott DiSavino; Editing by Jan Harvey)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))