Pieridae announces 2020 budget for Goldboro

By Helen Murphy    
December 18 2019

GUYSBOROUGH – In updating its financial projections for 2020 on Dec. 12, Pieridae Energy revealed its development expense budget for Goldboro LNG as the company moves closer to a Final Investment Decision (FID) for the project.

“We have approved a pre-FID capital budget of $32 million and a development expense budget for Goldboro LNG of $16 million in 2020,” CEO Alfred Sorensen said in the company release.

“It’s Pieridae’s advantage of being an integrated LNG company and not just a gas producer and processor that sets us apart from our peers,” added Sorensen. “Delivering on our stated goals of completing a fixed price contract with KBR and finalizing project financing puts us in a position to make a final investment decision for Goldboro LNG next year. We continue to make progress toward that goal.”

Pieridae announced earlier it has engaged global engineering firm Kellogg Brown & Root Limited (KBR) to review its front-end engineering and design study for the proposed Goldboro LNG facility and provide an estimate necessary for construction of the project.

The company’s recent acquisition of Shell Canada’s gas-producing properties in the Alberta Foothills gives Pieridae enough supply for the first train (facility) of the project.

“Together with existing Foothills drilling and development experience within the Company, Pieridae is well positioned to leverage the US$1.5 billion of the government-backed loan guarantees for conventional gas supply development which the German government approved in principle,” the company said of the financing option in support of the Goldboro LNG project.

Pieridae has signed a 20-year sales agreement with German utility Uniper for LNG from Goldboro, worth approximately $35 billion -- the largest export contract in Canadian history.