Pieridae says Bechtel will provide proposal for Nova Scotia LNG export plant
29/09/2020 19:53
Sept 29 (Reuters) - Pieridae Energy Ltd PEA.V said on
Tuesday that engineering firm Bechtel will provide a proposal to
build the Goldboro liquefied natural gas export plant that the
Canadian energy company is developing in Nova Scotia.
Pieridae sought a new engineering firm after its previous
contractor - KBR Inc KBR.N - said it would focus on government
work and exit most LNG projects. urn:newsml:reuters.com:*:nL2N2EK1H3 urn:newsml:reuters.com:*:nL1N2DZ2GA
Pieridae said Bechtel would deliver a fixed-price proposal
by May 31, 2021.
A spokesman for Pieridae said that would keep the company on
track to make a final investment decision by June 2021 to build
the proposed $10 billion Goldboro plant and enable the project
to start producing LNG in 2025-2026.
In April, Pieridae said it would delay a final investment
decision until after Sept. 30 as government efforts to curb the
coronavirus outbreak cut global economic growth and energy
demand. urn:newsml:reuters.com:*:nL2N2C40NV
Pieridae is one of several companies developing North
American LNG export plants that have delayed projects as global
gas prices TRNLTTFMc1 JKMc1 dropped to their lowest levels
in years in an oversupplied market in 2019, and then plunged to
record lows in 2020 with the coronavirus-induced collapse in
demand. urn:newsml:reuters.com:*:nL1N2FN1GH
Goldboro is designed to produce almost 10 million tonnes per
annum (MTPA) of LNG, or about 1.3 billion cubic feet per day
(bcfd) of natural gas.
Pieridae has a 20-year agreement to sell all of the LNG from
the first liquefaction train at Goldboro - about 5 MTPA - to
German utility Uniper SE UN01.DE starting between Nov. 30,
2024 and May 31, 2025.
Pieridae said it expects construction to take about 56
months.
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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
FACTBOX-North American liquefied natural gas export projects
urn:newsml:reuters.com:*:nL1N2FN1GH
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(Reporting by Scott DiSavino; Editing by Steve Orlofsky)
((scott.disavino@thomsonreuters.com; +1 646 223-6072; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))