Pieridae completes purchase of Alberta gas producer

By Helen Murphy    
January 2 2019

GUYSBOROUGH – Pieridae Energy Ltd. has completed its acquisition of Alberta's Ikkuma Resources Corp. The sale was approved at a special meeting of Ikkuma shareholders on December 17.

The purchase gives Pieridae ownership of an extensive area of gas-producing and gas-prone properties in the central Alberta Foothills area.

Pieridae was granted a Permit to Construct the $10 billion Goldsboro LNG project from the N.S. Utilities and Review Board on Oct. 31, and the Ikkuma properties will meet some of the supply needs of the facility.

As reported in Nov., Pieridae has engaged Hatch Ltd. to act as its engineering adviser for the project.

There have been varying reports on when Pieridae plans to make its final investment decision (FID) for Goldboro LNG, ranging from early 2019 to next June. Pieridae's agreement with German-based utility Uniper Global Commodities SE states that the FID “must occur not later than September 30, 2019.”

Uniper has a 20-year sale and purchase agreement for LNG from the planned Goldboro facility.

Financing for the project has substantial support from the German government, which has deemed Goldboro LNG eligible for a total of $4.5 billion in potential loan guarantees.