Nova Scotia Goldboro LNG Buys Driller, Getting Gas from Canada

For years we’ve had a Canadian LNG export project on our radar, bringing you news about the project, hoping that prodigious amounts of Marcellus/Utica gas would be used at the plant. The project is called the Goldboro LNG project, planned by Pieridae Energy for the coast of Nova Scotia. Two weeks ago we told you that $3 billion of German money will be used to propel the $10 billion project to begin (see With $3B from Germany, Canadian Goldboro LNG Looks Like Done Deal). While it looks like the project will happen, alas, it will happen without liquefying Marcellus/Utica molecules. Last Friday Pieridae announced it is purchasing Canadian driller Ikkuma Resources Corp. Ikkuma has major acreage and producing wells (both conventional and shale) in Western Canada, mostly Alberta. With TransCanada Pipeline’s new lowball shipping charges (see TransCanada Pipe Begins Lowball Shipping to Compete with Marc/Utica), Pieridae will be able to ship its own gas to Nova Scotia, liquefy it, and sell it. We’re disappointed, but we certainly understand. You can’t build a multi-billion dollar LNG plant on the *hope* that US politicians in New York and New England will suddenly get their heads right and allow pipelines to flow cheap Marcellus gas north into Nova Scotia. We get it. It’s just a shame–because our gas is more than thousand miles closer to the Goldboro plant, cheaper to ship–IF the pipelines were in place to do so. Because of anti-fossil fuel freaks in New England, that’s not the case. Pieridae wants to get going and can’t wait forever. They’ve purchased their own reliable supplies, and with TransCanada’s low-ball shipping from west-to-east, Pieridae is pulling the trigger. The FID will happen soon, and Pieridae will be totally self-sufficient. Good for them. Bad for us…
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With $3B from Germany, Canadian Goldboro LNG Looks Like Done Deal

Location for proposed Goldboro LNG plant – click for larger version

Canadian company Pieridae Energy is on the cusp of making a positive final investment decision (FID) to build a $10 billion LNG export facility on the coast of Nova Scotia. In February, Pieridae enlisted the help of Morgan Stanley and Société Générale to help raise the $10 billion needed to build Goldboro LNG (see Pieridae Energy Hires Morgan Stanley, SG to Help Fund Goldboro LNG). In May, Pieridae began lining up customers in Europe (see Goldboro LNG in Nova Scotia Negotiating Deal to Sell LNG to Europe). In a press release issued yesterday, Pieridae says they have hired yet another adviser, KfW IPEX-Bank (in Germany), to help it get a $3 billion loan from the German government. Canada’s Financial Post is reporting if the German loan goes through, Pieridae is prepared to pull the trigger and commit (and begin to build) the project this year. Which is a good thing, because if Pieridae doesn’t begin construction on Goldboro LNG by the end of this year, they risk losing Nova Scotia environmental approval…
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Canadian Goldboro LNG Inches Toward Final Investment Decision

The Goldboro LNG export facility in Nova Scotia continues its march (shuffle?) toward construction. As we reported in February, Pieridae Energy (the builder) has enlisted the help of Morgan Stanley and Société Générale to help raise $10 billion to build it (see Pieridae Energy Hires Morgan Stanley, SG to Help Fund Goldboro LNG). Last May, MDN told you that Pieridae Energy had signed a labor agreement to build the Goldboro LNG export facility along the shore of Nova Scotia, Canada (see Update on Goldboro LNG – Labor Agreement Signed to Build). The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016, an indication that Marcellus/Utica gas may flow to the plant (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). And in May, we told you the facility is lining up customers for its LNG in Europe (see Goldboro LNG in Nova Scotia Negotiating Deal to Sell LNG to Europe). It’s now time for Pieridae to decide. If they don’t begin construction on the project in the next nine months, they risk losing Nova Scotia environmental approval…
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Goldboro LNG in Nova Scotia Negotiating Deal to Sell LNG to Europe

The Goldboro LNG export facility in Nova Scotia continues its march toward construction. As we reported in February, Pieridae Energy (the builder) has enlisted the help of Morgan Stanley and Société Générale to help raise $10 billion to build it (see Pieridae Energy Hires Morgan Stanley, SG to Help Fund Goldboro LNG). Last May, MDN told you that Pieridae Energy had signed a labor agreement to build the Goldboro LNG export facility along the shore of Nova Scotia, Canada (see Update on Goldboro LNG – Labor Agreement Signed to Build). The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016, an indication that Marcellus/Utica gas may flow to the plant (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). If the gas to feed the new export facility does come from the Marcellus/Utica, it will come via the Maritimes & Northeast Pipeline. However, Goldboro can also source gas from TransCanada’s pipeline system, from Western Canada. We remain hopeful that M-U gas will be the preferred feedstock. There is new news to report on this project. Pieridae announced earlier this week they are in the midst of negotiating a 10-year contract with a “European utility” to purchase up to 1 million tonnes per year of LNG…
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Goldboro LNG Export Plant on the Hunt for Marcellus Assets

Just last week MDN told you that Pieridae Energy has signed a labor agreement to build the Goldboro LNG export facility along the shore of Nova Scotia, Canada (see Update on Goldboro LNG – Labor Agreement Signed to Build). The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016, an indication that Marcellus/Utica gas will flow to the plant (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). As we’ve previously pointed out, gas to feed this new export facility will likely come from the Marcellus/Utica via the Maritimes & Northeast Pipeline. However, Goldboro can also get gas from TransCanada’s pipeline system–sourced from Western Canada. A Reuters story provides new details about Pieridae Energy’s plans for the project. Pieridae CEO Alfred Sorensen told Reuters the company is not just looking to buy gas on the open market, but looking to buy a driller or assets (leased acreage someone else is drilling on), to feed the plant. Pieridae is looking at both Western Canada AND in the Marcellus. The other tidbit we glean from the story is that the plant will cost on the order of $7.3 billion to build–the first time we’ve seen a number associated with the project…Continue reading

Update on Goldboro LNG – Labor Agreement Signed to Build

We’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016 (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). In August 2016, Honeywell announced it was selected to provide the Goldboro project with automation and safety systems and serve as the integrated main automation contractor (see Signs of Life in Canadian Goldboro LNG Export Project). And in October, Pieridae signed a labor contract to build the plant (see Pieridae Energy Signs Labor Contract to Build Goldboro LNG). That labor contact, originally signed in October, was recently ratified by a 85% of the union members expected to work on the project. It is yet another milestone along the way to building the Goldboro LNG plant…Continue reading

Pieridae Energy Signs Labor Contract to Build Goldboro LNG

youre-hiredAs we pointed out last week, the Canadian Goldboro LNG export plant continues to see activity, with an expected commitment coming in the next couple of months (see Pieridae Energy to Make FID on Goldboro LNG Project Next 2 Mos). We have yet another sign that the project is heading toward a final investment (FID) decision of “yes.” Our latest evidence? Pieridae Energy, the company building the project, has just signed a tentative labor agreement with unions in the region to provide the labor needed to build the plant…
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Pieridae Energy to Make FID on Goldboro LNG Project Next 2 Mos

Goldboro LNGWe’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. In February, the U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties, back in February (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). In August, Honeywell has announced it was selected to provide the Goldboro project with automation and safety systems and serve as the integrated main automation contractor (see Signs of Life in Canadian Goldboro LNG Export Project). Pieridae officials went on the record this week saying they are still on track to make a final investment decision (FID) by the end of this year, which is just over two months away. We take that to be a very good sign…
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Signs of Life in Canadian Goldboro LNG Export Project

Goldboro LNGWe’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. The most recent news we had was when the U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties, back in February (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). That is, until today. Honeywell has announced it was selected to provide the Goldboro project with automation and safety systems and serve as the integrated main automation contractor. That is, we see signs of life in this project!…
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Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus

The U.S. Dept. of Energy (DOE) has been pedal to the medal lately with approvals for LNG exports. Yesterday we told you that the Bear Head LNG project in Nova Scotia, Canada received DOE approval to export U.S. natural gas from their facility to non-U.S. free trade agreement counties (see Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus). Today we bring you the news that another Nova Scotia LNG project, Goldboro LNG, has also received approval from the DOE to export natgas to non-free trade agreement counties. Like Bear Head LNG, Goldboro LNG is now fully permitted and permissioned by the U.S. and Canada. Also like Bear Head, the Goldboro project will depend on natural gas coming from the Marcellus/Utica, and that won’t happen until the Maritimes & Northeast pipeline reverses its flow, and until either Kinder Morgan or Spectra Energy (or both) build pipelines that connect to it. There’s a lot of ifs/ands/buts that still remain–but sign-off by the DOE is a necessary and positive sign…
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Shale Energy Stories of Interest: Mon, Aug 12, 2019

MARCELLUS/UTICA REGION: Lynbrook community receives some insights on New York’s gas crisis; New motion seeks details on Maryland AG’s use of Bloomberg funded attorneys; A giant factory rises to make a product filling up the world: Plastic; OTHER U.S. REGIONS: Duke Energy’s Asheville natural gas plant fired up for final tests; Colorado is quickly becoming a patchwork of oil and gas rules after a major law change; NATIONAL: U.S. natural gas demand is at a record – and prices keep dropping; INTERNATIONAL: Pieridae slashes Goldboro LNG terminal budget by 56%; Frustration grows among natural gas producers amid low prices, LNG uncertainty; China might not buy American oil. So what?
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Energy Stories of Interest: Mon, Jul 15, 2019

MARCELLUS/UTICA REGION: It’s not too late for New York to start fracking; OTHER U.S. REGIONS: Total kicks up investment in Tellurian’s Driftwood LNG; TS Barry puts 70% of US LNG capacity at risk; Are e-fracs a fix for Permian gas constraints and giveaway prices?; NATIONAL: How Mike Bloomberg pays to prosecute the Trump EPA; Republicans struggle to unite on climate message; Where U.S. exports of butanes and natural gasoline end up; INTERNATIONAL: Pieridae agrees Goldboro LNG deal extension with Uniper; IEA – Huge oil glut coming in 2020; Cuadrilla to restart fracking at British site; 9 things to know about the booming global liquefied natural gas market.
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Pieridae Buys Shell Assets in W Canada to Feed Nova Scotia LNG

Pieridae Energy wants to build an LNG export plant in Nova Scotia, Canada. The project is called the Goldboro LNG project. Nearly a year ago we told you that Pieridae had purchased a small natural gas producer in Western Canada to help provide supplies of gas to the East Coast plant (see Nova Scotia Goldboro LNG Buys Driller, Getting Gas from Canada). Pieridae has just done it again. They’ve cut a deal to buy Shell Canada’s Alberta Hills gas production along with three gas processing plants for C$190 million.
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Energy Stories of Interest: Fri, May 10, 2019

MARCELLUS/UTICA REGION: DRBC lobbies a member state to oppose HB 827 economic justice bill; PA PUC approves gas pipeline expansion plan for Bradford County; NATIONAL: EIA expects less electricity to come from coal this summer as natural gas, renewables rise; 2018 was likely the most profitable year for U.S. oil producers since 2013; Big oil goes big green; INTERNATIONAL: Pieridae: Goldboro LNG unaffected by share price drop.
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Energy Stories of Interest: Tue, Apr 2, 2019

OTHER U.S. REGIONS: New Jersey’s renewable mandates will send electric bills to the moon; NATIONAL: Energy-related carbon dioxide emission profiles differ dramatically from state to state; Surging E&P profits, lower costs belie negative sentiment; INTERNATIONAL: KBR to conduct open book EPC estimate for Goldboro LNG; Saudi Aramco is world’s most profitable company, beating Apple by far; Saudi Aramco’s breakeven oil price is higher than expected; Natural gas is the ‘destination fuel of the future’, says Qatar Petroleum CEO.
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