Liquefied Natural Gas Ltd. signed an agreement to buy 100% of Bear Head LNG Corp. (BHLC) in Nova Scotia from a subsidiary of Anadarko Petroleum Corp. BHLC assets include:
• A 255-acre site with 180 acres of industrial-zoned land and 75 deepwater acres, and foundations in place for two 180,000-cu m LNG tanks. BHLC has already cleared the land, completed a majority of site works, and built roads.
• Project rights for the previously proposed LNG import terminal, including all assets, rights, and obligations associated with the Bear Head project.
LNG Ltd. plans to transform Bear Head into a 4-million tonne/year LNG export plant with potential for future expansion. The company expects to make a final investment decision on the liquefaction project in 2016 and has targeted a 2019 date for start of commercial operations.
LNG Ltd. has developed a gas supply plan and a transportation plan, and says it has received interest in tolling agreements from several parties. LNG Ltd. also reported discussions with gas transportation companies and owners of gas reserves regarding the supply from both onshore and offshore Canadian options and the Marcellus shale in the US Northeast.
The company said it intends to replicate its Magnolia LNG project with BHLC and fast-track the Nova Scotia project by using its existing development team and optimized single-mixed refrigerant (OSMR) liquefaction technology.
The company expects to close the $11-million transaction by Aug. 31.