Two liquefied natural gas proponents on either side of Canada’s coastlines are inching toward final investment decisions for their projects after securing key deals.
A day earlier, Pieridae Energy said it’s acquiring Shell Canada’s Alberta gas assets for $190 million. The Calgary-based company, which has been accumulating natural gas assets, has now secured the remaining conventional natural gas supply needed for its 10 million tonnes per year Goldsboro plant in Nova Scotia.
The Shell assets will allow Pieridae to access up to US$1.5 billion in credit support from the German government under the Untied Loan Guarantees program to develop the upstream assets as part of the Goldboro LNG Project. A Nova Scotia base of operations also means a delivery time of six days to markets in Germany, the U.K. and the Netherlands, faster than the U.S. or Russia can offer.
“North American gas industries are very saturated. We see an oversupply continuing and it’s going to remain a low-price environment for quite some time,” said Archer. “So if Canada wants to grow the gas business, the next logical step would be connecting to global markets — and both projects continue to advance that.”