Planning work continues toward reaching a final investment decision by the end of June for the nine-year-old liquefied natural gas (LNG) export project from Canada’s Atlantic coast, according to Pieridae Energy Ltd.
Executives said in the first quarter results the June 30 target stands to decide whether to move forward with the long delayed Goldboro LNG export terminal. Pieridae’s natural gas output, which would be used to supply Goldboro, hit a record high of 215 MMcf/d in 1Q2021.
“It was no small feat to deliver the highest quarterly production of natural gas in the company’s history,” said CEO Alfred Sorensen. “As we continue to make tangible progress with our Goldboro LNG Project, ours is beginning to look like ‘the last one standing’ with others in North America either being delayed or canceled outright.
“The governments of Canada, Alberta and Nova Scotia will continue to look for ways to expand Canadian global markets for natural gas in order to reap the long-term benefits of our project to support Indigenous Peoples reconciliation, create good paying middle-class jobs and play a supportive role in the global transition to a lower carbon economy.”
Site preparation is underway for the Nova Scotia export terminal location. Pieridae also has secured road access to the terminal site, but it noted that many obstacles remained. The company now is working on a contract with Bechtel Corp. for engineering, procurement, construction and commissioning services.
Pieridae still aims to satisfy the deadline to sanction the potential $10 billion project. To date it has only one customer, European energy trader Uniper Global Commodities SE. Uniper has agreed to purchase 4.8 million tons/year (625 MMcf/d), about half of the planned capacity.
Total production for the first three months was 43,997 boe/day, an increase of 7% year/year.
Work also continues on arranging about 3,000 miles of pipeline service from Alberta to the proposed terminal.
First quarter losses totaled C$19.5 million ($15.6 million) or minus C12 cents/share (minus 10 cents). That compares with 1Q2020 losses of C$11.5 million ($9.2 million) or minus C7 cents (minus 6 cents).
Petroleum and natural gas revenue was $81.9 million, an increase of $17.1 million or 26% compared to the same quarter in 2020
Pieridae has posted eight consecutive quarterly losses since a 2019 purchase of legacy production, pipeline and processing assets in Alberta from Shell Canada Ltd.
Net operating income in 1Q2021 totaled C$20.9 million ($16.7 million), up from C$19.3 million ($15.4 million) a year earlier.
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