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Bear Head LNG to export LNG to FTA countries

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Hydrocarbon Engineering,

On 17 July, the US Department of Energy (DOE) granted Bear Head LNG Corporation and Bear Head LNG (USA), LLC authorisation to export up to 440 billion ft3/y of US natural gas to Canada, and up to 8 million tpy of LNG from Canada to free trade agreement (FTA) countries.

"This is an important step in achieving certainty of gas supply for the Bear Head project," said John Godbold, Bear Head Project Director. "The US Department of Energy is implementing a regulatory framework that promotes trade and economic growth while balancing the provisions of the North American Free Trade Agreement, the US Natural Gas Act and the US National Environmental Policy Act." Bear Head LNG anticipates a decision in the near future on its application for DOE authorisation to export LNG to non-FTA countries. Godbold said that only two interventions of minor substance were filed during the 60 day comment period on Bear Head LNG's non-FTA application.

Bear Head LNG is the first proposed Canadian LNG export facility to be recognised by the US Federal Energy Regulatory Commission as an ‘Approved’ Canadian LNG export project. In May 2015, Bear Head LNG Corp. obtained the last of the 10 initial federal, provincial and local regulatory approvals needed to construct the facility located on the Strait of Canso in Nova Scotia.

The company has applied to Canada's National Energy Board (NEB) for authority to import natural gas from the US and export up to 8 million tpy of LNG in 2019 from Canada, with expanded authority to 12 million tpy in 2024. Bear Head LNG expects these authorisations in the near future.

Bear Head LNG Corp. has also applied to the DOE for authority to import for subsequent export up to 250 billion ft3/y of Canadian natural gas by pipeline that is in transit through the US, back into Canada for delivery to Bear Head LNG's proposed liquefied natural gas export facility. This authorisation would allow a portion of the Bear Head LNG’s natural gas requirements to come from sources in Western and Central Canada, enhancing commercial supply options.

“Great strides have been made in moving Bear Head LNG toward a final investment decision during 2016 as we continue to receive regulatory certainty for our facility,” said Bear Head LNG President Maurice Brand. “Over the next few months, we anticipate receiving our DOE approval to move Canadian gas through the US, the DOE non-FTA export approval and the NEB import and export approvals from Canada."

Adapted from press release by Rosalie Starling

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