Thanks for a great article Timbo. In the reference you provided there was a link to an editorial provided which I thought was quite interesting. The emphasis in the article is mine, note especially to reference to E.on.
EDITORIAL: Bear Head LNG project a game of patience
THE CHRONICLE HERALD - May 20, 2015 - 5:20pm
A bull market for liquified natural gas, and plenty of U.S. and local offshore supply to choose from. That would be the ultimate ticket for the proposed Bear Head LNG export terminal near Point Tupper, and for three other proponents who want to ship LNG from Nova Scotia.
But until those market forces line up, the next best thing for would-be LNG exporters is to have regulatory approvals in order and to have community support for their projects.
North America is awash with LNG export proponents — more than 50, all told. Getting a secure supply of gas will be the deciding factor that thins this herd down to a few successful projects. But getting all your regulatory and social-licence ducks in a row is also a comparative advantage. Firms that manage this are best placed to succeed when the market conditions for LNG exports are right.
That seems to be happening with the $4-billion Bear Head project, owned by Australia’s Liquified Natural Gas Ltd., and with the Goldboro, Guysborough County, facility proposed by Pieridae Energy Canada of Calgary.
This week, Bear Head LNG received provincial environmental assessment approval. Properly, it comes with a list of conditions that include plans for monitoring, management and mitigation of air emissions, greenhouse gases, noise, traffic and risks to birds and wildlife, as well as a provision to protect any archaeological finds.
Bear Head must also operate a community liaison committee, with a complaint resolution plan and members drawn from local governments, the Mi’kmaq community and the general public.
The company had already signed a memorandum of agreement with the Assembly of Nova Scotia Mi’kmaq Chiefs and is working on a Mi’kmaq benefits agreement. At a recent open house in Port Hawkesbury, there was substantial support for a project that could provide 600 construction jobs and employ 40 to 70 people in operations.
Federal approvals for the project and a Utility and Review Board construction permit were granted this spring.
Pieridae Energy has also moved patiently forward with its proposal for a $10-billion LNG export facility at Goldboro. It received provincial environmental approval last year, again with conditions that include emissions management, monitoring and mitigation of wildlife risks and operation of a community liaison committee.
Pieridae also has the edge of having secured a 20-year contract to supply a German customer, E.on. This was one reason a recent report on LNG exports by Harvard economist Leonardo Maugeri, a former executive with Italian oil giant, Eni, rated Pieridae’s project as the Canadian scheme “most likely to materialize.”
The Bear Head and Goldboro projects both have advantages over B.C. rivals, in that they are not developing remote greenfield sites requiring major new pipelines that face strong environmental and First Nations opposition.
None of this guarantees any LNG project will proceed. Bear Head and Pieridae have said investment decisions will be made in 2016 and clearly prices and gas supply are make-or-break factors. But the ability of proponents, communities and governments to co-operatively work out regulatory and impact issues is a key advantage. And it’s good to see that happening in Nova Scotia.
Go LNG!
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