Pieridae Energy Ltd. has closed the purchase of all of Shell Canada Energy’s midstream and upstream assets in the southern Alberta foothills for C$190 million ($142.5 million) in a deal that would provide the majority of gas needed to supply the first train at its proposed Goldboro liquefied natural gas (LNG) export facility in Nova Scotia.
The acquisition substantially increases Pieridae’s gas output to 210 MMcf/d by adding 119 MMcf/d of Shell production. The company previously produced just 91 MMcf/d. The package also includes 8,819 b/d of natural gas liquids and light oil.
Pieridae CEO Alfred Sorenson called the deal “transformational,” saying “it secures the majority of the natural gas needed, once developed, to supply the first train at our Goldboro LNG facility for at least twenty years.”
Pieridae has predicted that financing for the Goldboro LNG supply development in Alberta would be raised with the help of a $1.5 billion German government loan guarantee that the firm is seeking from a clean fuel incentive program.
The Shell transaction is the latest step in a marathon campaign to start LNG exports from the Atlantic coast of Nova Scotia. When the 1.4 Bcf/d export project was announced in October 2012, Pieridae projected that the export terminal would be in operation by late 2018.
Prospects of eastern gas supplies, thought to be available in 2012, have dried up. Depleted offshore production ended last winter. Fracking bans also have stopped replacement development onshore in Nova Scotia, New Brunswick and Quebec.