Bear Head LNG receives final project approval from Nova Scotia

Bear Head LNG has received approval from the Nova Scotia Department of Environment (NSE) for its updated provincial Environmental Assessment for the development of an 8 million tpy LNG-export facility in Point Tupper, Nova Scotia.

The NSE approval is the last of the 10 initial federal, provincial and local regulatory approvals needed to construct a LNG export facility on the Strait of Canso in Nova Scotia.

Bear Head LNG is now the only LNG project in Eastern Canada with all of the 10 project approvals and permits in place necessary for construction. Some of these approvals would take a minimum of 18 months to secure if they had not been previously obtained and appropriately maintained as active.

"Receiving Nova Scotia Environment's approval is a significant step in the development of Bear Head LNG," said John Godbold, project director of Bear Head LNG. "With this achievement, Bear Head LNG is now advancing from the initial permitting phase to start actual execution of the project."

Bear Head LNG says it has kicked off the front-end engineering and design (FEED) work with KBR, a global leader in the LNG engineering, procurement, and construction (EPC) business that has been involved in the delivery of about one third of the world's current LNG production capacity.

KBR has knowledge of the local site, since they executed the FEED work for Bear Head LNG, when it was proposed as an LNG import facility. KBR is also the leader of the KBR/SKEC joint venture for the FEED and EPC contract for Magnolia LNG, another wholly owned subsidiary of Liquefied Natural Gas Ltd. (LNGL), Bear Head's parent company.

"We are excited to embark on the FEED phase of the project with KBR, a well-credentialed partner in the continued development of the Bear Head LNG export facility," said Godbold. "Integration of KBR's prior FEED work for Bear Head LNG and the Magnolia LNG FEED will enable the Bear Head LNG project to be fast tracked toward a potential 2016 final investment decision and initiation of construction."

Bear Head LNG will be utilizing OSMR(R) liquefaction technology, a patented technology owned by parent company LNGL. OSMR(R) is patented in 16 countries/jurisdictions including the US and Canada.

"Bear Head LNG's use of OSMR(R) liquefaction provides a significant advantage over other LNG projects, especially those in Eastern Canada. It requires a lower CAPEX and significantly enhances energy efficiency and plant performance," said Godbold.

"These attributes of the OSMR(R) technology enable the project to be economically viable at 2 million tpy," he added. "While Bear Head LNG is currently permitted as an 8 million tpy facility with a pending application with the Canadian National Energy Board to export 12 million tpy, the Bear Head economics with OSMR(R) provides an opportunity to engage in a step-wise approach to capacity which enables Bear Head LNG greater flexibility relative to other developing LNG projects to align itself with differing timelines for gas supply and infrastructure availability in Eastern Canada, and provide for the future expansion to at least 8 million tpy through incremental phases."

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