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    Canada’s Pieridae reaches record gas in Q1

Summary

FID on Nova Scotia LNG project still expected in June

by: Dale Lunan

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Canada’s Pieridae reaches record gas in Q1

Canada’s Pieridae Energy, which acquired Anglo-Dutch major Shell’s conventional foothills gas assets in the summer of 2019, said May 13 it reached record natural gas production of more than 215mn ft3/d in Q1 2021.

While its net loss increased year-on-year, to C$19.5mn (US$16.06mn) from C$11.5mn, sequentially the loss was reduced from nearly C$46mn in Q4 2020. Cash flow provided by operating activities nearly doubled, to C$11mn from C$6.4mn in Q1 2020, while net operating income and adjusted funds flows from operations rose 9% and 7%, respectively, from the same period last year.

And with a Class 3 cost estimate in hand for its 10.4mn mt/yr Goldboro LNG project in Nova Scotia, Pieridae is working with prime contractor Bechtel to finalise a lump sum turnkey cost by the end of May, CEO Alfred Sorensen said.

“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 cancelled outright,” he said.

Pieridae has budgeted C$15-C$20m in Goldboro pre-development expenses, and assuming a final investment decision is reached by the end of June, an additional 2021 capital expenditure budget of C$250-C$350mn would be triggered.