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Bear Head LNG export facility receives finals approvals

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Hydrocarbon Engineering,

Bear Head LNG Corporation, a 100% subsidiary of Liquefied Natural Gas Limited, 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 is also pleased to advise that it has kicked off the Front End Engineering & Design (FEED) work with KBR Inc. KBR has knowledge of the local site, since it 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 Limited (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. 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,” said John Godbold.

Bear Head LNG will be utilising OSMR® liquefaction technology, a patented technology owned by parent company LNGL. OSMR® is patented in 16 countries/jurisdictions including the US and Canada. “Bear Head LNG’s use of OSMR® 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 John Godbold.

“These attributes of the OSMR® technology enable the project to be economically viable at 2 million tpy. 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® 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.”

The Managing Director of LNGL, Maurice Brand said, “The Board is very pleased with the progress of the Bear Head LNG project. As part of the transition from the initial permitting phase, expenditures will focus on access to the feed gas supplies and FEED for a full 8 million tpy export facility, maximising the use of the completed FEED for the Magnolia LNG export project. LNGL’s capital raise of $174 million will be used in part to support Bear Head’s initiatives.”

Adapted from press release by Rosalie Starling

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