Canadian LNG project OK’d, will export US natural gas to Europe

Proposed Canadian LNG project owned by Pieridae Energy

Proposed Canadian LNG project granted 20-year export, import licence from the National Energy Board.  Photo courtesy Harvard University.

On Monday, Pieridae Energy (Canada) Ltd, announced it received approval of a long-term licence to export US and Canadian natural gas from a proposed Canadian LNG terminal in eastern Canada.

The natural gas will processed at the company’s proposed Goldboro LNG plant located in Goldboro, Nova Scotia.  The LNG will then be exported to Europe and other countries.

“We’re happy to have achieved another significant milestone for the Goldboro LNG development” said Alfred Sorensen, president and CEO of Pieridae. “We’re also on track to complete our supply acquisition this year, and each step brings us closer to our final investment decision.”

The licence was granted on August 13 following a National Energy Board application submitted by the company on October 24, 2014.

In May of this year, Pieridae Energy (USA) Ltd was granted authorization from the US Department of Energy to export natural gas to Canada for end use in Canada and export abroad with countries that the USA has free trade agreements for trade in natural gas.

The export licence is for 20 years, beginning on the date of the first export with a maximum annual export capacity of 16.675 billion cubic meters.  The import licence is also a 20-year term, starting from the date of the first import and has a maximum annual import volume of 11.845 billion cubic meters.

Pieridae has a 20-year sales agreement with European-based E.ON Global Commodities SE, a subsidiary of one of the world’s largest investor-owned power and gas companies, to deliver approximately five million metric tons per annum of LNG produced from the proposed Goldboro LNG facility.

Pieridae plans to make a final investment decision on the Goldboro LNG project in 2016.