Liquefied Natural Gas Limited (ASX:LNG, OTC ADR:LNGLY) has filed an application with the U.S. Department of Energy requesting authorisation to export up to 440 billion cubic of gas from the U.S. to Canada for its Bear Head LNG project.
Authorisation is also being sought for the export of up to 8 million tonnes per annum of LNG from Canada to Free Trade Agreement (FTA) and Non-FTA nations.
This DOE application is in addition to a 23rd January 2015 DOE filing to import Canadian gas and re-export it back to Canada and replaces the application submitted to the DOE on 9th December 2014.
Once the two applications are approved, Bear Head will have access to vast North American natural gas supplies, including Western Canada, and the Appalachian, Gulf of Mexico, and Rocky Mountain regions of the U.S.
This provides the project with broad supply diversity and optionality.
Bear Head is optimistic that the DOE and the Canadian Government are vested in a streamlined regulatory framework that enables exports of U.S. natural gas to Canada, and of LNG from Canada to FTA and Non-FTA nations, in a manner that is consistent with statutory obligations and promotes economic policy and trade relations for both nations.
“Our goal has been, and continues to be, to achieve a solution that bridges the North American Free Trade Agreement, U.S. Natural Gas Act, and U.S. Natural Environmental Policy Act (NEPA),” Bear Head LNG chief operating officer John Godbold said.
“We have conducted considerable additional studies and analysis in order to comply with such a framework and satisfy all of the related regulatory requirements.”
Bear Head LNG has also requested authorization from Canada’s National Energy Board to export up to 8Mtpa of LNG in 2019 with an expansion to 12Mtpa in 2024.
Since Bear Head LNG has only requested the export of 8Mtpa from the U.S., at least 4Mtpa would need to be provided by Canadian sources if Bear Head LNG is to reach the 12Mtpa target.
Potential Canadian sources include Western and Central Canada, onshore in the Maritimes provinces, and offshore Nova Scotia.
The Bear Head LNG project is located on the deep, ice and dredge free waters of the Strait of Canso in Point Tupper, Richmond County, Nova Scotia.
It is being developed on a 255-acre site comprising industrial-zoned land (180 acres) and deep-water acreage (75 acres) that was partially developed for a LNG import terminal and then maintained in hot idle status.
The Bear Head LNG project is expected to have initial LNG production capacity of 8 million tonnes per annum.
It will use LNG Ltd’s patented OSMR® liquefaction technology, and integrate the design and engineering work already completed for the 8Mtpa LNG export terminal being developed in Louisiana for the company’s wholly-owned Magnolia LNG in Louisiana into existing feed for the project.
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