Pieridae: Goldboro LNG unaffected by share price drop

Canadian LNG project developer Pieridae Energy informed that its Goldboro LNG project in Nova Scotia has not been affected by the recent share price decline. 

The company noted that its business suffered no material adverse changes adding it does not believe the current trading price properly reflects the value of its investments.

Goldboro LNG project’s milestones are still firmly in place, Pieridae Energy said in its statement.

The project has all regulatory, environmental, import/export and construction permits in place and is supported by a 20-year sales deal with Uniper worth approximately $35 billion. The project is also supported by the German government to the tune of a $4.5 billion loan guarantee.

Commenting on trading development, Pieridae CEO, Alfred Sorensen, said, “I want to be clear: nothing has fundamentally changed with our Goldboro LNG project. We continue to take steps to move the project forward and our business model remains sound.”

He noted that the German government loan guarantees have not changed, adding that the company has negotiated arrangements with pipeline companies to transport natural gas to Goldboro.

“The Canadian Mainline continues to operate at less than half capacity and there is plenty of space to move our gas to the East Coast. Finally, pipelines across the country already exist, no new pipelines are needed to bring the gas to Nova Scotia,” he said.

In addition, Pieridae Energy continues to discuss financing options for the project as well as looking for new Alberta natural gas supplies to fill out the gas needed for the first facility or Train 1 at Goldboro.

Pieridae expects to start construction activities for Goldboro LNG in 2019 and ship first gas overseas to meet the expected global LNG shortfall in 2023/2024.