Pieridae Energy looking for natural gas acquisitions: CEO

Pieridae Energy

Pieridae Energy says it has a commitment from Uniper, a German utility, to buy supply from the proposed Goldboro LNG terminal in Nova Scotia.

Pieridae Energy behind proposed LNG terminal on Canadian east coast

Calgary-based Pieridae Energy Ltd. is looking to find sources of liquified natural gas to supply its proposed Goldboro LNG terminal in Nova Scotia.

According to a Reuters report, Chief Executive Alfred Sorensen said the company is looking to buy about 200 million cubic feet/day of natural gas production to supply the terminal.  Sorensen says Pieridae would consider buying an existing company or just assets.

Pieridae hopes to get the 10 million metric tonnes a year Goldboro LNG project running consisting of two facilities by 2021.

“What we really want is a resource with potential to grow into rather than producing right now,” Sorensen told Reuters. “Pieridae’s plan from the beginning was to be a fully integrated LNG facility owning the upstream as well as the terminal.”

Sorensen says Pieridae will be looking to land the acquisitions later in the year.  Possible companies with Canadian natural gas assets for sale include Husky Energy and Cenovus has said it may sell off some of its gas production.

With the Marcellus shale play in the Eastern United States geographically closer to the project, Sorensen says he is not ruling out supply from the most prolific gas field in the US.

A final investment decision on the $7.3 billion Goldboro terminal is expected later this year.

Uniper, a German utility, has already committed to buying supply from the first of two proposed LNG facilities at Goldboro.  Uniper owns a 1 per cent stake in the terminal.

Pieridae Energy has agreed to buy Petrolia, a Quebec-based oil and gas producer through a reverse takeover.  The move will create a publicly traded company, Pieridae Energy Ltd and will be known as Amalco until the close of the deal in July.

“We are trying to solve how to get gas supply for the terminal and opportunities to finance,” Sorensen said.  A listed company would likely improve Pieridae Energy’s chances of accessing capital to fund growth.

Posted in: Canada

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