LNGL finalises Bear Head acquisition
THE ROADHOUSE BOWSER: Liquefied Natural Gas Limited (ASX: LNG) has finalised the acquisition of 100 per cent of Bear Head LNG Corporation (BHLC).
The acquisition follows the company’s announcement in July regarding the signing of an agreement to acquire BHLC from a subsidiary of Anadarko Petroleum Corporation for US$11 million.
LNG said acquiring BHLC is in line with its strategy of procuring sites in North America where the company can replicate its Magnolia LNG project and fast‐track development by using its existing LNGL development team and its OSMR® technology.
The Bear Head LNG project is located in Richmond County, Nova Scotia, Canada.
Its key assets include:
A 255‐acre site comprising industrial‐zoned land (180acres) and deep‐water acreage (75 acres) as well as foundations in place for two 180,000 cubic meter LNG tanks. The land has been cleared, a majority of site works completed and roads constructed; and
The Project Rights of the previously proposed LNG import terminal, including all assets, rights and obligations associated with the Bear Head project.
LNGL signalled its intentions to transform Bear Head into a 4 million tonnes per annum LNG export facility with potential for future expansion.
The company said it is in discussions with gas transportation companies and owners of gas reserves regarding the supply of natural gas from onshore and offshore Canadian natural gas supply options, and the Marcellus Shale Gas Play in North‐Eastern USA, to the Bear Head LNG project site.
“We are very pleased to have finalised the acquisition,” LNG Limited managing director Maurice Brand said in the company’s announcement to the Australian Securities Exchange.
“This is a significant transaction for LNG Limited and is consistent with our strategic plan to selectively secure sites that meet our criteria and develop a strong North American presence.
“Importantly, Bear Head LNG will further de‐risk the company’s asset base.
“We are particularly keen to secure opportunities where we can either replicate Magnolia LNG or substantially use all the company’s technical, engineering, technology and development expertise.
“Bear Head fits those criteria with the development plan based on the use of the company’s OSMR® LNG Process Technology which will deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule.”
Email: LNG@LNGLimited.com.au
Website: www.LNGLimited.com.au