Page 17 - NorthAmOil Week 39

NorthAmOil POLICY NorthAmOil

Trump extends drilling

bans off certain states

US EAST COAST US President Donald Trump has extended the bans would also extend to offshore wind farms.
bans in place on drilling in waters off the coasts “The withdrawal includes all energy leasing,
of North Carolina and Virginia from 2022 previ- including conventional and renewable energy,
ously until 2032. This follows a similar extension beginning on July 1, 2022,” a US Bureau of Ocean
of bans on offshore drilling off Florida, Georgia Energy Management (BOEM) spokeswoman,
and South Carolina. Tracey Moriarty, told Bloomberg in emailed
This marks a reversal on Trump’s initial stance comments.
on offshore drilling when he took office in 2017, This comes as renewable developers are
when he planned to extend offshore drilling to spending hundreds of millions of dollars on
waters off a number of states including Florida. rights to build wind farms along the US East
However, the proposal to allow drilling offshore Coast. The bans will not affect existing wind farm
Florida met with strong opposition from the rights off the coasts of Virginia and North Car-
tourism and real estate industries in the state, as olina, but come as a setback to developers who
well as environmental groups. In addition, the were looking at potential opportunities offshore
appetite for offshore drilling even in waters where South Carolina.
it is allowed has been muted throughout Trump’s Both the oil and gas industry and wind energy
presidency. This is owing to low oil prices mak- developers have criticised the bans, which could
ing companies more averse to the risks and costs prove difficult for a subsequent president to
associated with offshore exploration. reverse.
Trump will be hoping that his latest exten- The National Ocean Industries Association’s
sions of drilling bans, announced on Septem- (NOIA) president, Erik Milito, said the bans
ber 25, will help his electoral prospects in those threatened “tens of thousands of additional
states, as well as those of other Republicans up jobs and billions of dollars of investment are
for re-election. expected through a prospective wind lease off-
On September 29, it emerged that the drilling shore the Carolinas”.™

PROJECTS & COMPANIES

Pieridae signs Bechtel up to Goldboro LNG

NOVA SCOTIA CANADA’S Pieridae Energy has signed a ser- two decades. They have a proven track record of
vices agreement with contractor Bechtel related delivering projects throughout the world on time
to the proposed Goldboro LNG project in Nova and on budget.”
Scotia, on Canada’s East Coast. Bechtel replaces A Pieridae spokesman was quoted by Reu-
KBR, which walked away in July after saying it ters as saying that the agreement with Bechtel
would focus on government work and would would keep the company on track to make a final
exit most LNG projects. investment decision (FID) on Goldboro by June
Bechtel has agreed to review the scope and 2021. If this deadline is met, the project would
design of the proposed Goldboro LNG facil- begin producing LNG in 2025-26. Pieridae was
ity and develop an engineering, procurement, previously targeting an FID this year, but post-
construction and commissioning (EPCC) poned it in April after the LNG industry was hit
execution plan by March 31, 2021. It will hard by the coronavirus (COVID-19) pandemic
then provide a fixed-price lump sum turnkey and its impact on demand.
(LSTK) contract proposal by May 31. Bechtel The Goldboro project is estimated to cost
has also agreed to engage with the Nova Scotia CAD10bn ($7.5bn) to build, and would produce
Mi’kmaq First Nations on their participation 9.6mn tonnes per year (tpy) of LNG from two
in the construction of a large work camp at the liquefaction trains. Pieridae has a 20-year agree-
site. ment to sell all of the LNG from the first train to
“This is a very positive step forward for our German utility Uniper.
Goldboro LNG Project,” said Pieridae’s CEO, Pieridae is working with the Alberta Energy
Alfred Sorensen. “Bechtel has significant expe- Regulator (AER) to secure the transfer of
rience building and delivering global LNG licences for production assets from Royal Dutch
projects, helping their customers deliver about Shell, which would supply feedstock gas to the
30% of the world’s LNG capacity over the past Goldboro terminal.™

Week 39 01•October•2020 www. NEWSBASE .com P17