Bear Head LNG Terminal

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Bear Head LNG Terminal is a proposed LNG terminal in Nova Scotia, Canada.

Location

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Project Details

  • Parent: LNG Limited[1]
  • Location: Point Tupper, Richmond County, Nova Scotia, Canada
  • Coordinates: 45.604444, -61.3675 (approximate)
  • Capacity: 8 mtpa, 1.15 bcfd
  • Status: Proposed
  • Type: Export
  • Trains: 2-4
  • Start Year: 2020

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Bear Head LNG Terminal is a proposed LNG terminal in Nova Scotia, Canada.[2] The following permits have been approved for the terminal: environmental assessment; permits to build a gas plant facility from the Department of Natural Resources and the Nova Scotia Utility and Review Board; and a permit to develop from the municipal government in Richmond County.[3] It will include 2 to 4 production trains, with the individual capacities of 2 mmtpa to 4 mmtpa.[4]

As of July 2019, the project was still proceeding, but parent company Anadarko Petroleum further postponed construction. The starting construction date remains to be determined.[5]

In August 2019, the Anadarko Petroleum was acquired by Occidental Petroleum after Occidental outbid Chevron Corporation.[6]

In December 2019, Bear Head LNG Corp. was given a three year extension (until the end of 2022) by the Nova Scotia Utility and Review Board for the construction permit for the terminal and associated Bear Paw Pipeline. Bear Head’s successful extension request cited major hurdles faced by Canadian east coast export proposals after offshore gas production ended and onshore replacements were ruled out following Nova Scotia, New Brunswick, and Quebec's bans on unconventional drilling, including hydraulic fracturing.[7]

In April 2020, Natural Gas Intel reported that securing binding offtake agreements has been a struggle for the Bear Head LNG facility due to the already high global LNG supplies.[8].

Financing

In March 2020, it emerged that the project is in financial jeopardy due to factors exacerbated by the coronavirus pandemic. Financing for LNG Limited, the Australian company responsible for the terminal, fell through. The publicly traded company was hoping for bridge loan to keep it afloat until it could be taken private by a company in Singapore.[9]

In May 2020, further doubt was cast on the project following the announcement that LNG Limited's mounting financial problems had resulted in the calling in of administrators PriceWaterhouseCoopers to review the company's assets, as well as the resignation of four LNG Limited directors.[10]

Articles and resources

References

  1. Project History LNG Limited, accessed April 27, 2020
  2. Bearhead LNG Terminal, A Barrel Full, accessed April 2017
  3. Bear Head LNG, LNG, The Energy Link, accessed May 2017
  4. Bear Head LNG Project, Richmond County, Nova Scotia Hydrocarbons Technology, accessed July 18, 2019
  5. Bear Head LNG in hibernation Upstream, July 1, 2019
  6. Anadarko Petroleum Wikipedia, July 1, 2019
  7. Gordon Jaremko, Bear Head LNG Project Granted Extension by Nova Scotia Regulator Natural Gas Intel, December 11, 2019
  8. Jamison Cocklin, Scuttled Deal May Threaten Magnolia, Bear Head LNG Projects Natural Gas Intel, April 14, 2020
  9. Clark Williams-Derry, IEEFA update: Financial prospects falter for LNG projects, IEEFA, Apr. 24, 2020
  10. The Offtake: LNG in Brief, Natural Gas Intel, May. 1, 2020

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External resources

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