Canadian LNG Project to Export Marcellus Gas Gets DOE Approval

In April MDN shined the spotlight on one of four LNG export projects planned for Nova Scotia, Canada–Pieridae Energy’s Goldboro LNG project (see Canadian LNG Project Woos Europeans with Promise of Marcellus Gas). There are a number of hurdles Pieridae must overcome before the first shovel hit the ground to build the facility. The Maritimes & Northeast pipeline has to get FERC permission to reverse its flow. The gas has to get to the Maritimes & Northeast pipeline in the first place via new pipelines from either Kinder Morgan or Spectra Energy. The price of oil has to rise to make it economical. And oh, since it will be U.S. shale gas from the Marcellus/Utica feeding the LNG plant getting exported, the U.S. Dept. of Energy will need to approve export licenses for the plant. You can check that last one off the list. The DOE announced last week they are granting Pieridae permission to export up to 292 billion cubic feet (Bcf) per year of natural gas (0.8 Bcf per day) to countries that have a Free Trade Agreement (FTA) with the U.S. The DOE has not yet ruled on exports to non-FTA countries…

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