Anadarko Petroleum Corp. is considering other “strategic options” for its Bear Head liquefied natural gas (LNG) import terminal planned for Cape Breton Island near Point Tupper, NS, after a deadline to sell the proposed terminal expired on Thursday. Anadarko had agreed to sell the subsidiary to private equity firm U.S. Venture Energy for $125 million (see NGI, July 17).

“I can only confirm that the deadline for closing has past and right now we are considering all the options,” Anadarko Canada spokeswoman Nadine Barber told NGI. “There are several options for the project, and we’ll be able to tell you once we’ve made a decision, but we haven’t made a decision yet.” Barber could not discuss any details of the transaction, but she said it’s possible Anadarko could still sell the subsidiary to U.S. Venture Energy.

“Of course, we could still sell it to them. We could market it to others. We could hang onto it. But as you are well aware, this was [separated] from the Anadarko Canada group,” which is being sold to Canadian Natural Resources to help pay down the debt associated with the recent purchases of Kerr-McGee Corp. and Western Gas Resources (see NGI, Sept. 18).

Anadarko obtained Bear Head in 2004 with the purchase of Access Northeast Energy Inc., a private Canadian company whose sole project was the terminal (see NGI, Aug. 16, 2004). Barber said Anadarko retains the rights to the Bear Head LNG project.

“There is a desire [by Anadarko] to get out of the Canadian marketplace,” said Barber. “Whether or not we make a decision to hang onto it is still [unclear].”

Earlier this month Maritimes & Northeast Pipeline terminated an agreement with Anadarko to transport Bear Head’s regasified LNG through Maritimes’ proposed pipeline expansion (see NGI, Sept. 18). Maritimes had retained a right to terminate the contract if Anadarko failed to demonstrate that it had arranged for adequate LNG supply to support the terminal.

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