Pieridae Energy, the developer of the Goldboro LNG project in the Canadian Atlantic province of Nova Scotia, said it had negotiated extensions of the key deadlines under its 20-year supply agreement with German utility Uniper.
These include expected commercial deliveries of shipments to Uniper to start between November 30, 2024 and May 31, 2025.
The Calgary-based company is seeking to build a liquefaction plant with an initial two Trains northeast of the Nova Scotia capital, Halifax.
Pieridae added that it had also extended to September 30, 2020, its deadline for making a financial investment decision (FID) for the Goldboro plant. The FID had previously been expected by mid-2020.
The 20-year agreement with Uniper is for 5 million tonnes per annum of LNG, half of the plant’s expected first phase capacity.
“These extensions allow us to complete the work needed to make a final investment decision for the Goldboro project,” said Pieridae Chief Executive Alfred Sorensen.
The company said it had most of the necessary Canadian federal and provincial regulatory permits to proceed.
Pieridae awarded a contract in April 2019 to US energy engineering company KBR to perform a review of an amended version of a previously prepared front-end engineering and design study of the Goldboro plant.
KBR will also conduct an “open-book estimate” necessary for an engineering, procurement, construction, and commissioning agreement with the intention of entering into an EPC contract by the time of the FID on Goldboro.
“We continue to have ongoing discussions with KBR that will ultimately lead to finalized designs and fixed costs for the project. We expect the vast majority of that work to be completed near the end of 2019, which will move us closer to FID,” explained Sorensen.
Pieridae additionally signed an agreement in June 2019 with Shell Canada Energy to acquire all of Shell’s midstream and upstream assets in the southern foothills of Alberta province to boost its LNG feed-gas reserves.
The purchase price of the Shell Alberta assets is C$190 million (US$145M), including C$175M in cash to be raised by Pieridae through the issuance of debt and equity.
The balance will be in the form of the issuance of Pieridae common shares to Shell with an aggregate value of C$15M. Its shares are on the venture list of the Toronto Stock Exchange for small commodities companies.