Pieridae Energy files to build natural gas liquefaction plant in Goldboro

Calgary-based Pieridae Energy Ltd has taken another step towarddeveloping a multi-billion-dollar liquefied natural gas plant in Guysborough County, N.S.

On Friday, the Nova Scotia Utilityand Review Board disclosed it had received an application from the company to build a natural gas liquefaction plant, marine terminal, storage facility and power plant at Goldboro.

In its application, Pieridae says the proposed export plant will produce 10 million tonnes of liquefied natural gas per year with storage capacity for 380,000 cubic metres of LNG.

The facilities would be adjacent to Maritimes and Northeast Pipeline, where natural gas from Nova Scotia's offshore natural gas fields makes landfall.

Two LNG terminals being promoted

Those fields are winding down and Exxon Mobil is preparing to decommission its gas plant at Goldboro.

Pieridae wants to bring cheap shale gas from across North America for export, primarily to Europe.

The facility includes an onshore gas processing plant, a marine terminal for the loading of LNG onto LNG carriers and a wharf for mooring associated support vessels and unloadingmaterials during construction.

Pieridae is one of two companies promoting an LNG terminal in Nova Scotia. The other proposal is for Bear Head at the Strait of Canso.

But Pieridae's project is further ahead. Earlier this year it hired the investment bank Morgan Stanley to help raise $10 billion in equity and project financing. In its application,Pieridae appears ready to commit.

"Pieridae is poised to take its final investment decision this year and, as such, wishes to apply for its permit to construct," the application states.

Ready for construction

In its 2017 year-end management discussion and analysis, Pieridae said once it decides to proceed it will immediately "commence the construction of the facility and to implement its complementary upstream strategy."

Upstream is an industry term for securing supply through exploring, drilling and operating fields.

Pieridae says it has received a detailed front-end engineering and design study from Chicago Bridge andIron, Golder Associates and Dillon Consulting that will be the basis for permitting the project.

The utility and review boardhas hired Lloyd's Register to evaluate safety issues associated with Pieridae's plans to build and operate the LNG facility.

The regulator does not have any jurisdiction over environmental or economic issues associated with the facility.

It will hold a public information session on May 14 at the Goldboro to outline its role and answer questions from the public.

Pieridae secured a Class 2 provincial environmental assessment four years ago. Pieridae did not respond to a request forcomment late Friday.