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Bear Head Doubles Size of Nova Scotia LNG Project

Perth, Australia-based Liquefied Natural Gas Ltd.'s (LNG Ltd.) Bear Head LNG Corp. plans to double the capacity of its proposed natural gas liquefaction and export terminal on Cape Breton Island in Nova Scotia, to 8 million tonnes per annum (mtpa) from 4 mtpa.

The capacity doubling was disclosed in a filing for permit modifications made with regulators Nova Scotia Utility and Review Board and Nova Scotia Environment. The project was conceived years ago by another company to be an import terminal but was acquired by LNG Ltd. and re-imagined for exports earlier this year (see Daily GPIJuly 28).

"This is a major step in adapting Bear Head LNG's 12 existing construction and environmental permits to an export project," said Bear Head COO John Godbold. "Bear Head LNG is targeting a higher rate of production capacity based on market response and gas supply projections. This change also reflects our conversations with regulatory agencies and political leaders."

The Bear Head site has was partially developed years ago for the import project. "With the existing permitting and the construction that is already under way, we have a material head start of six to 12 months against competing LNG projects," Godbold said.

Also last week, Bear Head competitor Pieridae Energy (USA) Ltd., general partner of Goldboro LNG LP II, filed for its Nova Scotia LNG export project with U.S. regulators. Pieridae wants to pipe U.S. gas to Nova Scotia for liquefaction and export (see Daily GPIOct. 31).

Bear Head plans to look offshore for its natural gas feedstock and also might access U.S. supplies. "There are 15 proven and undeveloped significant discovery licenses of natural gas offshore Nova Scotia, with recoverable reserves sufficient to underpin the project," said Bear Head CFO Ian Salmon. "In addition, we believe there is potential to access onshore natural gas from prolific North American production basins to provide feedstock to Bear Head LNG."

Bear Head said it plans to build its Nova Scotia terminal largely to the same design as an 8 mtpa terminal under development by sibling company Magnolia LNG LLC, which also is owned by LNG Ltd. (see Daily GPIMarch 7). A final investment decision on the Bear Head project is expected in late 2015 to 2016. The facility could be in commercial operation in late 2018 to 2019.

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