LNG Limited buys North American project
Liquefied Natural Gas Limited said that it has significantly expanded its presence in the North American LNG sector by signing an agreement to acquire 100% of Bear Head LNG Corporation (BHLC) from a unit of Anadarko for US$11.0 million.
The Bear Head LNG project is located in Richmond County, Nova Scotia, Canada, and the key assets include:
– A 255‐acre site compromising industrial‐zoned land (180 acres) and deep‐water acreage (75 acres) as well as foundations in place for two 180,000 cubic meter LNG tanks. The land has been cleared, a majority of site works completed and roads constructed; and
– The Project Rights of the previously proposed LNG import terminal, including all assets, rights and obligations associated with the Bear Head project.
This acquisition, which is subject to standard closing conditions and consents, is in line with LNGL’s strategy of acquiring sites in North America where the company can replicate its Magnolia LNG project and fast‐track development by using its existing LNGL development team and its OSMR® technology, LNG Limited said in a statement.The transaction close is expected on or before 31 August 2014.
LNGL plans to transform Bear Head into a 4 mtpa LNG export facility with potential for future expansion.The company has already developed a gas supply plan and a transportation plan, and has interest from several parties to enter into Tolling Agreements, adopting the same business model as the Magnolia LNG project.
LNGL is in discussions with gas transportation companies and owners of gas reserves regarding the supply of natural gas from onshore and offshore Canadian natural gas supply options, and the Marcellus Shale Gas Play in North‐Eastern USA, to the Bear Head LNG project site.
As part of this transaction and once it is completed, LNGL will appoint John Godbold as Chief Operating Officer and Project Director of Bear Head LNG Corporation. John will be responsible for the project and reports to LNGL’s Managing Director Maurice Brand.
He has led energy projects for Pangea LNG, Gulf Coast LNG and El Paso Energy, and is a former NASA engineer.
Ian Salmon will also be appointed Chief Financial Officer and Chief Commercial Officer following the close of the transaction. Ian previously worked for El Paso Energy and Morgan Stanley.