Pieridae Energy says that it anticipates signing a major contract for the Goldboro LNG project “in the coming months” with engineering firm Kellogg Brown & Root.
KBR has been engaged to perform a review of an amended version of the previously prepared front-end engineering and design study for the proposed Nova Scotia facility, Pieidae said in a statement.
KBR will also conduct an open-book estimate necessary for entering into a lump sum turnkey engineering, procurement and construction contract.
Pieridae said it expects to start construction activities in 2019 and ship first gas overseas to meet the expected global LNG shortfall in 2023/2024.
“This is Eastern Canada’s only fully permitted LNG facility with gas supplies, a pipeline route and an anchor customer. Goldboro LNG will create thousands of Canadian jobs and establish a solid global market for Canadian natural gas for years to come,” said Pieridae CEO Alfred Sorensen.
“With the terms of an EPC contract due shortly, Pieridae will have met all of the criteria needed to move to a final investment decision on Goldboro.”
Total development costs for natural gas production and the Goldboro liquefaction facility are expected to reach $10 billion.
The project is designed produce 10 million tonnes per year of LNG, supplying natural gas to Europe.
Pieridae has signed a 20-year sales agreement with German utility Uniper worth approximately $35 billion, the largest export contract in Canadian history
The company owns natural gas assets in the Alberta Foothills, and says agreements are in place to use existing pipelines to transport the natural gas from Western Canada to the Goldboro facility’s front door.
A benefits agreement for the project has also been signed with the Assembly of Nova Scotia Mi’kmaq Chiefs.