Canadian East Coast LNG Project Nears EPC

Canadian Pieridae Energy said April 1 it has engaged KBR to review a previously-completed front-end engineering and design (Feed) study and conduct an open-book estimate necessary for entering into a lump sum turnkey engineering, procurement and construction (EPC) contract for its 10mn mt/yr Goldboro LNG export terminal in the eastern Canadian province of Nova Scotia.

Pieridae expects to sign an EPC contract in the coming months and to start construction in 2019. First gas would be shipped overseas in time to meet the expected global LNG shortfall in 2023/2024, it said.

“This is Eastern Canada’s only fully permitted LNG facility with gas supplies, a pipeline route and an anchor customer. Goldboro LNG will create thousands of Canadian jobs and establish a solid global market for Canadian natural gas for years to come,” Pieridae CEO Alfred Sorensen said. “With the terms of an EPC contract due shortly, Pieridae will have met all of the criteria needed to move to a final investment decision on Goldboro.” 

A portion of the feed gas for Goldboro LNG will come from conventional natural gas assets Pieridae owns in western Canada, which will be moved through existing pipelines to a supply lateral that will serve the terminal. German utility Uniper, planning an import terminal on the German coast, has signed a 20-year purchase agreement; while Swiss utility Axpo has entered into a term sheet for an undisclosed volume from the second train of the terminal.