Bear Head LNG expands capacity to 8 mtpa
LNG Limited said that its unit Bear Head LNG recently filed for modifications to the existing construction and environmental permits granted by the Nova Scotia Utility and Review Board and Nova Scotia Environment.
“This is a major step in adapting Bear Head LNG’s 12 existing construction and environmental permits to an export project. These key regulatory filings help maintain our accelerated pace in executing the project development plan,” says John Godbold, Bear Head LNG Chief Operating Officer and Project Director.
In addition, Bear Head LNG will expand the initial facility production capacity to 8 mtpa, doubling the 4 mtpa previously announced.
“Bear Head LNG is targeting a higher rate of production capacity based on market response and gas supply projections. This change also reflects our conversations with regulatory agencies and political leaders. We have been on a fast‐track from day one, with significant permitting approvals already in place and detailed level engineering and initial site construction completed,” said Godbold.
Bear Head LNG will be developed on a site that was partially developed and then maintained in hot‐idle status.
“With the existing permitting and the construction that is already underway, we have a material head start of 6 to 12 months against competing LNG projects,” said Godbold.
Maurice Brand, Bear Head LNG President, and LNGL Managing Director and Chief Executive Officer, said investors signaled their confidence in the project when the company raised $38.6 million to fund the Bear Head LNG project in July, 2014.
Ian Salmon, Bear Head LNG Chief Financial Officer and Chief Commercial Officer, said the project is investigating several options for natural gas supply.
“There are 15 proven and undeveloped Significant Discovery Licenses of natural gas offshore Nova Scotia, with recoverable reserves sufficient to underpin the project. In addition, we believe there is potential to access onshore natural gas from prolific North American production basins to provide feedstock to Bear Head LNG,” said Salmon.
A final investment decision on the project is expected in late 2015 to 2016. LNGL anticipates that the Bear Head LNG export facility could be in commercial operation in late 2018 to 2019.
Press Release; Image: LNG Limited