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Pieridae extends Goldboro LNG FID deadline
NOVA SCOTIA
PIERIDAE Energy has pushed back its final investment decision (FID) on its proposed Gold- boro LNG terminal in Nova Scotia, Eastern Can- ada. e developer announced on July 11 that it had negotiated extensions of the main deadlines under its 20-year agreement with German utility Uniper.
Commercial deliveries of LNG to Uniper are now expected to start between November 30, 2024 and May 31, 2025. Meanwhile, the deadline for making an FID on Goldboro LNG has been extended to September 30, 2020.
The agreement with Uniper covers 5mn tonnes per year (tpy) of LNG, or half of the Gold- boro facility’s output.
“ ese extensions allow us to complete the work needed to make a nal investment deci- sion for the Goldboro project,” Pieridae’s CEO, Alfred Sorensen, said in a statement. “We con- tinue to have ongoing discussions with KBR [the proposed contractor] that will ultimately lead to nalised designs and xed costs for the project. We expect the vast majority of that work to be completed near the end of 2019, which will move us closer to FID.”
Pieridae said KBR was reviewing an amended version of the previously prepared front-end engineering and design (FEED) study for Goldboro LNG. e engineering rm will also conduct an open-book estimate necessary for entering into a lump sum turnkey (LSTK)
engineering, procurement and construction (EPC) contract for the project.
e extension comes a er Pieridae said in late June that it was buying gas assets in Alberta from Royal Dutch Shell for CAD190mn ($145mn).
“Our recent announcement that we will be acquiring key Shell assets in the Alberta Foot- hills helps us secure much of the remaining conventional natural gas supply needed for the first train at Goldboro,” said Sorensen. “This is Eastern Canada’s only LNG facility with the majority of its permits, a pipeline route and an anchor customer.”
Pieridae expects to begin shipping gas from Goldboro LNG in 2023-24.
Selling to China
Days a er Pieridae announced it would push back its FID, another smaller-scale LNG devel- oper, FortisBC, said it had signed Canada’s rst long-term supply agreement to export LNG to China. Under the two-year agreement with Chi- na’s Top Speed Energy, 53,000 tonnes of LNG will be shipped from the Tilbury terminal in British Columbia to China by mid-2021.
FortisBC has already been supplying LNG to customers for export to China on a spot basis since 2017. e Tilbury LNG plant can liquefy 5,000 gigajoules (131,385 cubic metres) per day, and there are plans to add more lique- faction capacity.™
The extension comes after Pieridae said in late June that it was buying gas assets in Alberta from Royal Dutch Shell for CAD190mn ($145mn).
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w w w . N E W S B A S E . c o m Week 28 18•July•2019