Pieridae 30-45 days from final investment decision

Company acquires Alberta gas producer to supply Goldboro LNG

By Helen Murphy    
August 29 2018

GUYSBOROUGH – Alfred Sorensen, CEO of Pieridae Energy, says the company is “on the cusp” of making its final investment decision for the $10 billion (US) Goldboro LNG project. During a telephone interview with The Journal Monday, Sorensen said getting a construction permit before the end of September is key to moving forward.

That permit, from the N.S. Government, is a condition of Pieridae’s recently announced acquisition of Ikkuma Resources, an Alberta gas producer.

“The purchase of Ikkuma begins the final steps to reaching the final investment decision,” Sorensen said in a release.

The final financing pieces are expected to be put into place after Pieridae gets a permit to construct, he told The Journal.

“Towards the end of September we should have a very good idea if this is all going to come together,” he said. Sorensen said Pieridae is about 30 to 45 days away from making its final investment decision on Goldboro LNG.

Ikkuma does not produce enough gas to fulfill all of Goldboro LNG’s supply needs, but Sorensen said the company has a “very good” development plan in place to acquire the additional supply needed.

“We don’t need the full supply today,” he said. “We need it five years from now.” The CEO said the potential is good for getting other producers on board. “Once you have one, it’s easier to get others.”

When asked about plans for a work camp at Goldboro, Sorensen said local roads could not handle traffic from the 3500 workers needed to build the facility.

“It makes more sense to have people housed at the site,” he said. Pieridae is currently negotiating with companies that provide work camps, although Sorensen said it won’t be one of the first things to be set up. The initial 800 or so workers needed for site preparation can be accommodated in the local area, he said, and a work camp will be necessary when major construction begins.