Eyeing early 2017 decision

Pieridae working on key supply deal

By Helen Murphy    
November 16 2016

GUYSBOROUGH – Alfred Sorensen isn’t too worried about Donald Trump’s election affecting prospects for Goldboro LNG. When The Journal asked the president and CEO of Pieridae Energy if potential investors might be spooked by the surprise win, Sorensen said he thinks those post-election jitters “are going away.”

Instead of the election results, he said “it’s all about supply right now” for Goldboro LNG’s prospects. And a deal currently in the works could be the answer.

“We’re working on a specific transaction that we hope will get the project where it needs to be sooner as opposed to late,” he said during an interview Monday.

Looking ahead, he said the “biggest issue will still be where energy prices will be.” But he’s encouraged by “continuing to see recovery in the back end of LNG pricing.”

“We’ve seen price strengthening quite a bit... That (price) is really going to be what decides around capital, rather than the election.”

When asked if Pieridae is still on track to make its final investment decision by the end of 2016, Sorensen said, “a lot depends on this transaction we’re working on.”

But he feels the final investment decision will likely wait until the first quarter of 2017. With American Thanksgiving Nov. 24 and Christmas holidays on the horizon, “there just aren’t many business weeks left in the year,” he said.

“The project itself is just kind of waiting right now on the supply story to get the investment, and this transaction will help move that forward...It’s just a matter of getting this thing across the line.”

That key deal could be secured as early as this week, he told The Journal.

The $8 billion Goldboro LNG project aims to be operational by 2021.