Canada’s Pieridae pivots on Goldboro LNG
Pieridae Energy, which has been pursuing its 10mn mt/yr Goldboro LNG terminal on Canada’s east coast for much of the last decade, said July 2 it is evaluating “strategic alternatives” for the project.
In a statement, CEO Alfred Sorensen said Pieridae had made “tremendous progress” in advancing Goldboro, but as of June 30, the deadline date for a final investment decision (FID) codified in a 20-year offtake agreement with German Uniper for output from the terminal’s first 5mn mt/yr train, it had been unable to meet all of the key conditions required for a positive FID.
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“Following consultation with our board, we have made the decision to move Goldboro LNG in a new direction,” he said. “The project’s fundamentals remain strong: robust LNG demand from Europe and high global LNG prices, indigenous participation, a net-zero emissions pathway forward, and support from jurisdictions across Canada.”
These factors, Sorensen added, “speak to our ongoing efforts to find a partner to take advantage of these opportunities.” Media reports in recent months have suggested Pieridae is seeking a C$950mn (US$766mn) investment from the federal government, but sources at Natural Resources Canada have said so formal application has been made.
Cost pressures and time constraints due to COVID-19, Sorensen said, “have made building the current version of the LNG project impractical.
“We will now assess options and analyze strategic alternatives that could make an LNG project more compatible with the current environment,” he said. “In addition, the company will continue its work to further optimize the operation and development of our extensive Foothills resources and midstream assets, including our carbon capture and sequestration and blue power development.”