A C$16 million ($12 million) development expense budget will keep alive in 2020 the delayed plan to export natural gas from Canada’s Atlantic coast via the Goldboro terminal in Nova Scotia, according to project sponsor Pieridae Energy Ltd.
The company said it remains committed to its latest stated target to reach a final investment decision in 2020 about whether to build the liquefied natural gas (LNG) terminal Goldboro LNG for tanker deliveries to Europe.
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.
“We continue to make progress,” said Pieridae President Alfred Sorenson.
Pieridae’s 2020 targets include finalizing a construction contract with engineering conglomerate KBR and a multibillion-dollar loan guarantee sought from the German government. Pieridae has worked to secure a$1.5 billion loan guarantee from a clean fuel incentive program.
In August, Pieridae cut this year’s 2019 development budget by 56% to C$20 million ($15 million) from C$45 million ($33.8-million) after low commodity prices caused losses on Alberta natural gas production.
The firm now expects 2020 operating income of C$80-110 million ($60-82.5 million), thanks to its C$190 million ($142.5-million) asset purchase from Shell Canada Ltd. in October. The 2020 Pieridae budget includes drilling for gas that would supply Goldboro.
The Shell midstream and upstream assets are expected to provide most of the gas needed to supply the first train at the proposed Goldboro facility.
The Shell acquisition increased Pieridae’s gas output to 210 MMcf/d from 91 MMcf/d. The package also included 8,819 b/d of natural gas liquids and light oil.
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