Goldboro LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Goldboro LNG Terminal is a proposed LNG terminal in Nova Scotia, Canada.

Location

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Project Details

  • Owner:
  • Parent: Pieridae Energy
  • Location: Goldboro, Nova Scotia, Canada
  • Coordinates: 45.182556, -61.645528 (approximate)
  • Capacity: 10 mtpa, 1.43 bcfd
  • Status: Proposed
  • Type: Export
  • Start Year: projected 2022

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

Background

Goldboro LNG Terminal is a proposed LNG terminal in Nova Scotia, Canada.[1]

If constructed, Goldboro LNG Terminal's gas would be delivered via the existing Maritimes & Northeast Pipeline. The LNG produced at Goldboro LNG project would be shipped to Europe, South America, and Asia.[2]

The facility has secured a binding offtake buyer agreement with Uniper of 5 million tons per annum for 20 years.[3] Proponents of the project have reported that the Goldboro project has not faced the same opposition that is common among LNG projects in Western Canada.[4]

In July of 2019, construction of Goldboro LNG was postponed until the end of September 2020.[5]

In May 2020, Alberta's provincial energy regulator declined to approve the sale of extensive gas infrastructure from Shell Canada to Pieridae Energy on the grounds that there were uncertainties over which of the two company's would be liable for subsequent clean up costs following the transfer of the assets. The 284 wells, 66 gas and 82 pipelines in the southern Alberta foothills which Pieridae is attempting to purchase would contribute to supplying the proposed Goldboro LNG terminal. Underpinning the regulator’s verdict on the sale was the intention to prevent more highly expensive energy cleanups in Alberta landing with the region's taxpayers. Shell Canada and Pieridae appeared intent on challenging the decision by the regulator or resubmitting their application.[6]

Financing

In August 2018, Pieridae Energy announced the appointment of the German export finance bank KfW IPEX-Bank as an advisor on the project. KfW IPEX-Bank's role is to assist the company in finalising a US$3 billion dollar untied loan guarantee for the estimated US$10 billion project from the German federal government under its UFK program (Garantien für ungebundene Finanzkredite). Such a guarantee can be provided by the German government if a German company secures any sort of raw materials and requires money to pay for them. Morgan Stanley and Société Générale are also advisors to the project.[7] In November 2019, Pieridae announced that the German government had offered to increase the financial credit guarantees (UFK Guarantees) for loans up to US$4.5 billion.[8] In May 2020, and despite the highly adverse global market conditions for companies aiming to develop major LNG terminal projects, Pieridae Energy continued to talk up the delayed project's potential, citing the "US$4.5 billion in potential loan guarantees from the German government".[9] A Freedom of Information request submitted by environmental campaigners in January 2020 to Germany's Ministry of Economy received the response that Pieridae has not received a loan guarantee so far, merely a Letter of Intent from the German government.

Pieridae is also lobbying federal and provincial governments in Canada for financial help to build the terminal, and is seeking approximately CAN$1 billion in public handouts.[10]

Coronavirus delay

In April 2020, Pieridae Energy announced that the final investment decision (FID), planned for autumn 2020, for the Goldboro LNG Terminal will be delayed due to depressed global LNG markets and the COVID-19 pandemic. The company's CEO Alfred Sorensen added that it is now in negotiations with German energy company Uniper to extend the FID deadline to June 2021.

Articles and resources

References

  1. Goldboro LNG Terminal , Company, accessed April 2017
  2. Goldboro LNG Company site, accessed June 14, 2017.
  3. "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  4. "Yedlin: East Coast LNG moving faster than West Coast" Deborah Yedlin, Calgary Herald 23 May 2017.
  5. Gordon Jaremko,Goldboro LNG Project Delayed Until September 2020 Natural Gas Intel, July 12, 2019.
  6. Bob Weber,Shell, Pieridae to try again after Alberta Energy Regulator blocks licence transfers Global News, May 15, 2020.
  7. Pieridae engages KfW IPEX-Bank as adviser in Germany Pieridae Energy press release, Aug. 15, 2018
  8. Opportunities for LNG from Canada increase Pieridae Energy, Nov. 5, 2019
  9. 'This is the time' for Canadian LNG: Goldboro developer Upstream, May 28, 2020
  10. Nova Scotia LNG project decision delayed due to market conditions, COVID-19 Bloomberg, Apr. 16, 2020

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