Pieridae to buy Shell Canada gas assets for C$190 mln (updated)
27/06/2019 08:33
(Repeats to additional subscribers)
By Nia Williams
CALGARY, Alberta, June 26 (Reuters) - Canada's Pieridae
Energy PEA.V will buy gas assets in Alberta from Royal Dutch
Shell RDSa.L for C$190 million ($144.77 million), Pieridae
said on Wednesday, securing supply for its planned liquefied
natural gas plant in eastern Canada.
The deal will consist of all of Shell's midstream and
upstream assets in the southern Alberta Foothills area, which
produce 29,000 barrels of natural gas, natural gas liquids and
condensate. Pieridae is also buying three sour gas plants.
It will enable Pieridae to secure the remaining supply
needed for the first phase of its proposed Goldboro LNG plant in
Nova Scotia. If it goes ahead Goldboro will be Canada's first
east coast LNG project, producing 10 million tonnes per year.
urn:newsml:reuters.com:*:nL1N21K0FJ
"Not only does this deal help us secure the remaining
conventional natural gas supply needed for the first train of
the Goldboro LNG project, it makes Pieridae a major player in
the Alberta midstream and upstream industry," said Pieridae
Chief Executive Alfred Sorensen.
Shell and its partners are building Canada's first LNG
export terminal in northern British Columbia, but the company
has scaled back operations elsewhere in the country, including
in Alberta's oil sands. urn:newsml:reuters.com:*:nL1N21119M
Pieridae will retain all site-based Shell employees and some
Calgary-based employees who support the Foothills assets, Shell
said in a statement.
"We are pleased they (the assets) are going to a buyer with
a strong focus on safety, community and environmental
stewardship, and one that is well placed to take these assets to
the next stage of their development," Shell Canada President
Michael Crothers said.
($1 = 1.3124 Canadian dollars)
(Reporting by Nia Williams
Editing by James Dalgleish)
((nia.williams@thomsonreuters.com; +1-403-531-1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))