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Goldboro LNG Receives Key Permit, But FID Still in Offing

Goldboro LNG obtained a construction permit on Wednesday but set no date to use the favorable decision from the Nova Scotia Utility and Review Board (NSUARB) to build its proposed Canadian east coast liquefied natural gas (LNG) export terminal.

Project owner Pieridae Energy Ltd. responded to the regulatory advance with a statement that Hatch Ltd. has been engaged for engineering advice and only promised work would begin “as soon as a positive financial investment decision (FID) is taken.”

The NSUARB reported that only seven of 197 comment letters collected during the review of the LNG terminal construction application expressed concerns, while 190 applauded Pieridae for raising hopes of economic development and jobs.

Permit conditions include obeying provincial industrial benefits regulations that require employment and training for Nova Scotia residents as well as opportunities for local suppliers to bid for materials and service contracts.

Pieridae promised to comply with provincial rules. The firm continues to work on securing gas supplies in Alberta and British Columbia, arranging cross-country pipeline service, closing the takeover of producer Ikkuma Resources, and applying for up to $3.5 billion in German government loan guarantees.

The Goldboro LNG plan calls for eventual investment of more than $10 billion in construction of two production lines capable of exporting 1.4 Bcf/d. But after Pieridae devised the proposal seven years ago, Canadian offshore natural gas wells depleted and provincial bans against fracking ruled out tapping nearby substitute shale supplies in Nova Scotia and New Brunswick.

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