Permit to Construct brings Pieridae nearer to FID for Goldboro LNG

By Helen Murphy    
November 7 2018

GUYSBOROUGH – With its Permit to Construct now in hand, Pieridae Energy is focused on the final steps needed to reach a final investment decision (FID) to build the $10 billion Goldboro LNG project.

The N.S. Utilities and Review Board granted the Permit to Construct the facility on Oct. 31. The board’s role with respect to Pieridae’s application for the permit was “to ensure that, from a public safety perspective, the LNG plant is designed, constructed, operated and, ultimately abandoned, in accordance with the Regulations and the Nova Scotia Code of Practice for LNG Plants,” the board said in its written decision. The Board engaged the services of Lloyd's Register to act as its certifying authority and provide recommendations to the board related to the application.

The UARB held a public information session related to the application on May 14, 2018, at the Goldboro Interpretive Centre. Approximately 100 members of the public, as well as board staff and a representative of Lloyd’s Register attended the session.

The board noted it had received 197 letters of comment from the public and interested groups by the stated deadline of June 15. “Most of the letters supported the project, while seven letters raised various concerns,” according to the board decision.

In a news release Oct. 31, Pieridae said it “will now proceed diligently to satisfy each of the associated conditions of that permit and to commence the construction of the Goldboro LNG Facility as soon as a positive financial investment decision is taken by Pieridae.”

In anticipation of the start of construction, Pieridae has engaged Hatch Ltd. to act as its engineering adviser. “Hatch was selected due to its core competencies in the conversion, storage, handling and transportation of LNG, which is critical to ensuring a well-thought-out plan that incorporates all aspects of the project site,” said Pieridae.

The company is also continuing to engage with First Nations about opportunities connected to the project.

“It is appropriate to formally recognize the close cultural and historical relationship between the Mi’kmaq people in Nova Scotia and their traditional territory and the resources of the province while acknowledging that the Mi’kmaq have not historically ceded lands or resources through treaty or other formal agreement,” said Alfred Sorensen, CEO of Pieridae.

There have been varying reports on when Pieridae plans to make its FID, ranging between this month and next June. A recent amendment to the 2013 sale and purchase agreement between the company and German-based utility Uniper Global Commodities SE states that the FID “must occur not later than September 30, 2019.”

Uniper’s 20-year sale and purchase agreement for LNG from the planned Goldboro facility is seen as a key advantage of Pieridae’s project.

This amendment, dated on Nov. 1, 2018, also states that Goldboro LNG must start ordering major components for the facility no later than Sept. 30, 2019 and that commercial deliveries to Uniper must start sometime between June 30, 2022 and December 31, 2023.

Pieridae’s work to secure financing for the project received a boost recently from the German government when it confirmed Goldboro LNG is eligible for an additional $1.5 billion in loan guarantees, for a total of $4.5 billion in potential guarantees for the project from Germany.