Pieridae still plans FID on Nova Scotia LNG export plant by late June
15/04/2021 19:06
April 15 (Reuters) - Canadian energy company Pieridae Energy
Ltd PEA.V said on Thursday it continues to work toward making
a final investment decision (FID) by June 30 to build its
proposed Goldboro liquefied natural gas (LNG) export plant in
Nova Scotia.
That would allow the $10 billion project to produce first
LNG in 2025-2026.
Pieridae has a 20-year agreement to sell all the LNG from
Goldboro's first liquefaction train - about 5 millions tonnes
per annum (MTPA) or 0.66 billion cubic feet per day of natural
gas - to German utility Uniper SE UN01.DE .
Pieridae said engineering firm Bechtel Corp plans to deliver
a fixed-price proposal to build the plant by the end of May.
urn:newsml:reuters.com:*:nL1N2GQ1DO
A year ago, Pieridae said it would delay making a FID until
after Sept. 30, 2020, 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 in recent
years 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
There are currently 13 projects in North America, including
Goldboro, that have said they plan to make FIDs in 2021.
Analysts, however, expect only one or two projects will actually
go forward this year. One project many analysts expect to go
forward this year is Venture Global LNG's Plaquemines plant in
Louisiana. urn:newsml:reuters.com:*:nL1N2LK27O
Goldboro is designed to produce about 10 MTPA. Pieridae
plans to source the gas for Goldboro 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
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(Reporting by Scott DiSavino
Editing by Marguerita Choy)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))