Pieridae Energy Ltd. expects to make a final investment decision (FID) on its 10-million tonne/year (tpy) Goldboro LNG liquefaction project in Nova Scotia, Canada, in mid-2021. Assuming the project advances, Pieridae would then begin a 5-year drilling plan to fill Goldboro’s 5-million tpy Train 1. Production from the first train has been sold to German utility Uniper under a 20-year contract with a 10-year optional extension.
The company plans, through its conventional Foothills drilling program, to fill its three Alberta sour gas plants in preparation for sending feed gas to Goldboro. The plants—in Jumping Pound, Caroline, and Waterton—have a combined capacity of 750 MMcfd but have been operating at 330 MMcfd. Pieridae expects 2021 Foothills production of 40,000-45,000 boe/d.
Pieridae has allocated $10-15 million for pre-FID Goldboro development expenses. About half is for Bechtel Corp. to deliver a comprehensive engineering, procurement, construction, and commissioning (EPCC) execution plan by Mar. 31, 2021, and a final lump sum, turnkey EPCC contract price proposal by May 31, 2021 (OGJ Online, Sept. 30, 2020). The remaining funds will be used for third-party due diligence work and fees for midstream companies for delivery of pipeline engineering analyses that must be completed before Pieridae can make an FID.
Assuming a successful FID, Goldboro LNG capital expenditures of $250-350 million will be incurred in 2021. These expenditures would be made on early works at the LNG site: highway realignment around the site, a down payment for construction of a large-scale workforce lodge, building marine infrastructure for LNG loading, and site preparation.