Pieridae eligible for additional $1.5 billion loan guarantee from German government

By Helen Murphy    
October 31 2018

GUYSBOROUGH – Pieridae Energy welcomed news this week that the company’s request for access to $1.5 billion more in loan guarantees from the German government for its Goldboro LNG project has been approved. Confirmation of Pieridae’s eligibility for the guarantee satisfies a “critical condition” for the company’s acquisition of Ikkuma Resources, an Alberta gas producer, Pieridae said in a news release Monday, Oct. 29. It also “marks an important milestone” in reaching a final investment decision for the $10 billion project.

“We are extremely pleased with the additional support that Pieridae is eligible to receive from the German federal government,” said Alfred Sorensen, CEO of Pieridae. “This latest announcement from the German government advances our objectives of completing the company’s acquisition of Ikkuma and reaching a positive financial investment decision for the integrated Goldboro LNG project.”

The $1.5 billion (US) guarantee would help Pieridae secure financing for upstream natural gas development. The amount is in addition to eligibility for $3 billion in prospective German government loan guarantees, previously announced, to secure financing to build the Goldboro LNG facility.

The actual granting of these guarantees is subject to a commitment that a specified amount of liquefied natural gas produced annually from the proposed Goldboro LNG facility over a term of 20 years will be delivered to, and be regasified in, Europe. In 2013, German-based Uniper Global Commodities S.E. entered into a 20-year agreement with Goldboro LNG to purchase approximately five million tons per annum of LNG produced from train 1 of the proposed Goldboro LNG facility.

A local group opposed to the project, the Guysborough Communities Coalition, wrote to the German government in August – along with the N.S. Fracking Resource and Action Coalition (NOFRAC) – to ask that Germany not award the loan guarantees requested by Pieridae.

A decision on another key piece needed to get Pieridae to a green light on proceeding with the project, a permit to construct, is expected soon from the N.S. Utilities and Review Board.