Pieridae agrees Goldboro LNG deal extension with Uniper

Pieridae Energy has negotiated extensions of the key deadlines under its 20-year agreement with German utility Uniper.

These include expected commercial deliveries of gas to Uniper to start between November 30, 2024 and May 31, 2025, and the extension of the deadline to make a positive financial investment decision (FID) for the company’s proposed Goldboro LNG facility to September 30, 2020.

The 20-year agreement with Uniper is for half the liquefied natural gas produced at Goldboro or 5 mmtpa (million tonnes per annum).

“These extensions allow us to complete the work needed to make a final investment decision for the Goldboro project,” said Pieridae CEO Alfred Sorensen. “We continue to have ongoing discussions with KBR that will ultimately lead to finalized designs and fixed costs for the project. We expect the vast majority of that work to be completed near the end of 2019, which will move us closer to FID.”

KBR (Kellogg, Brown & Root Limited) is currently reviewing an amended version of the previously prepared front-end engineering and design (FEED) study for the proposed Goldboro LNG facility.

KBR will also conduct an open-book estimate necessary for entering into a lump sum turnkey engineering, procurement and construction (EPC) contract.

Pieridae expects to ship first gas overseas to meet the expected global LNG shortfall in 2023/2024.

“Our recent announcement that we will be acquiring key Shell assets in the Alberta Foothills helps us secure much of the remaining conventional natural gas supply needed for the first train at Goldboro,” added Sorensen.