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Pieridae gets more time for Goldboro LNG deliveries

Canadian liquefaction player gets deadline extensions for commercial deliveries, FIDs

Canadian liquefaction player Pieridae Energy is getting more time to deliver volumes to German customer Uniper from the planned Goldboro LNG export project in Nova Scotia, which has been delayed amid weak demand driven by the Covid-19 pandemic.

The company said Tuesday it had negotiated extensions of key deadlines under the existing supply contract, under which Uniper had agreed to purchase the entire 4.8 million tonnes per annum capacity of the first train at Goldboro LNG for a term of 20 years.

The agreement previously called for commercial deliveries of LNG to begin between 30 November 2024 and 31 May 2025. It also targeted a final investment decision deadline of 30 September 2020.

The changes disclosed Tuesday now call for commercial deliveries to Uniper to start between 31 August 2025 and 28 February 2026, with a new FID deadline of 30 June 2021.

Pieridae said last month it would delay sanctioning the two-train, 9.6 million tonnes per annum development beyond 30 September of this year, one of a growing number of developers to postpone an FID because of market upheaval caused by Covid-19.

Last week, Cheniere said it had cut its forecast for LNG projects moving forward in the next two years in half because of the pandemic.

“Over the last several weeks we have seen projects in Australia, Africa and the Gulf Coast either cancelled or delayed indefinitely due to the challenging energy market,” Pieridae chief executive Alfred Sorensen said.

“We believe this is an opportunity for Canada to enter into this industry at a time when others are exiting. Our Goldboro LNG Project is fundamentally sound‎ and with fewer competing projects, now is the time to proceed.”

He added that the company was focused on continuing work with KBR to sign a fixed-price engineering, procurement and construction contract to build Goldboro LNG.

“Pieridae has begun to contract for services outside the primary engineering, procurement and construction contract with the intent to begin the site preparation work as soon as possible,” Sorensen said.

“Some of these activities include building the wharf and jetty, road reconstruction, and constructing the work camp.”

Source: Upstream | This text was excerpted from the media outlet cited on May 5, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.