Bear head LNG plans initial phase of 8mtpa
THE ROADHOUSE BOWSER: Bear Head LNG Corporation, a wholly-owned subsidiary of Liquefied Natural Gas Limited (ASX: LNG), has filed for modifications to existing construction and environmental permits granted by the Nova Scotia Utility and Review Board and Nova Scotia Environment.
“This is a major step in adapting Bear Head LNG’s 12 existing construction and environmental permits to an export project,” Bear Head LNG chief operating officer and project director John Godbold said in LNG’s announcement to the Australian Securities Exchange.
“These key regulatory filings help maintain our accelerated pace in executing the project development plan.”
Bear Head LNG indicated its intention to expand the initial facility production capacity to eight million tonnes per annum, doubling the 4mtpa previously announced.
“Bear Head LNG is targeting a higher rate of production capacity based on market response and gas supply projections,” Godbold explained.
“This change also reflects our conversations with regulatory agencies and political leaders.
“We have been on a fast‐track from day one, with significant permitting approvals already in place and detailed level engineering and initial site construction completed.”
The LNG releases said Bear Head LNG will be developed on a world‐class site that was partially developed and then maintained in hot‐idle status.
“With the existing permitting and the construction that is already underway, we have a material head start of 6 to 12 months against competing LNG projects,” Godbold said.
The LNG release highlighted a number of what it considers to be advantages the project possesses, including:
‐ Bear Head LNG is located on the deep, ice and dredge free waters of the Strait of Canso in Point Tupper, Richmond County, Nova Scotia, and is being developed on a 255‐acre site comprising industrial‐zoned land and deep‐water acreage.
‐ The prior owners of Bear Head LNG spent more than $100 million to design, and complete engineering work and site construction of the Bear Head LNG site in the early 2000’s maintaining the facility in hot‐idle status since then – all benefits that Bear Head LNG is utilising.
‐ Bear Head LNG already has 12 permits in place to build an LNG facility, including an approved environmental assessment; permits to construct a gas plant facility from both the Department of Natural Resources and the Nova Scotia Utility and Review Board; and a Development Permit from the municipal government in Richmond County. Modifications of these existing permits to apply to a LNG liquefaction facility are the subject of the filing.
‐ The Bear Head LNG project will piggyback on design and engineering work nearing completion for the LNG export terminal under development in Louisiana by Magnolia LNG LLC, also a wholly-owned subsidiary of LNGL.
‐ The Bear Head LNG site is about half the shipping distance to major European markets compared to U.S. Gulf ports. The location also puts Bear Head LNG closer than its North American competitors, including those in British Columbia, to burgeoning natural gas markets in India, Argentina, and other major LNG markets.
Email: LNG@LNGLimited.com.au
Website: www.LNGLimited.com.au