Posted - June 3, 2013 -Bill Lehane - upstream
Germany’s E.ON has signed a long-term deal for liquefied natural gas supplies from Pieridae Energy’s proposed Goldboro LNG export terminal in eastern Canada.
Pieridae Energy chief executive Afred Sorensen said the deal provided the “economic security needed” to complete the first train of the terminal, adding the sales agreement was based on European market prices.
E.ON’s global commodities arm has agreed to purchase around 5 million tonnes per annum for 20 years from the Nova Scotia development.
The LNG volumes are destined for a number of locations in western Europe, the companies said on signing the deal in Berlin.
Newcomer Pieridae Energy is at the environmental assessment stage of its LNG project,which is to include an LNG plant, facilities for storage and export, and a marine jetty for loading.
The company aims to reach a final investment decision on the project in 2015.
Pieridae Energy is partnered in the development by Calgary’s Contact Exploration, which is managing the retention of onshore natural gas reserves and production to supply the Goldboro facility.
The two companies said they were “in advanced discussions with North American natural gas exploration and production and pipeline companies” on gaining natural gas feedstock and transportation services for the facility.
Upon completion, the Goldboro LNG terminal will be equipped to export up to 10 million tonnes per annum of natural gas, with on-site storage capacity of 690,000 cubic metres of LNG.
The terminal is targeted to start commercial operations in early 2020, transporting natural gas to Goldboro, Nova Scotia, primarily via existing pipeline systems, and exported by ship to international markets.
Post to be found at:
http://www.upstreamonline.com/live/article1328758.ece
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