Pieridae Energy has renegotiated terms with a contracted buyer of LNG from its proposed facility in Nova Scotia, adding a year to the deadline for a final investment decision.
In 2013 Pieridae signed a 20-year supply deal with German utility Uniper for 5 mtpa, or half of the capacity of the Goldboro LNG project.
At the time, the final investment decision was expected in 2015.
The most recent version of the contract with Uniper had September 30, 2019 as the deadline for FID, followed by commercial deliveries of gas starting between June 30, 2022 and December 31, 2023.
As of July 9, the FID deadline has been extended to September 30, 2020, followed by commercial deliveries starting November 30, 2024 and May 31, 2025.
“These extensions allow us to complete the work needed to make a final investment decision for the Goldboro Project,” Pieridae CEO Alfred Sorensen said in a statement.
The company is currently working with KBR to finalize designs and fixed costs for the project, Sorensen said.
“We expect the vast majority of that work to be completed near the end of 2019, which will move us closer to FID.”
Pieridae's goal is to become the first fully integrated, independent LNG producer in Canada.
In June, the company announced it will pay $190 million to buy natural gas assets in Alberta from Shell, which Sorensen said helps the company secure much of the remaining conventional natural gas supply needed for the project’s first train.