DOE seeks comments on export of gas to Canada for LNG project

The Office of Fossil Energy of the U.S. Department of Energy will give notice in the Dec. 10 Federal Register of an Oct. 24 application by Pieridae Energy (USA) Ltd. requesting authorization to export domestically produced natural gas in a volume up to 292 billion cubic feet per year (Bcf/yr), or approximately 0.8 Bcf per day (Bcf/d).

Pieridae US proposes to export domestically produced natural gas: to Canada at the United States-Canada border near Baileyville, Maine, at the juncture of the Maritimes & Northeast (M&N) U.S. Pipeline and the M&N Canada Pipeline; to use a portion of the gas as feedstock in a Canadian natural gas liquefaction facility called the Goldboro LNG Project, to be developed by one or more Pieridae affiliates and to be located at the Goldboro Industrial Park in Guysborough County, Nova Scotia, Canada; and to export a portion of the gas in the form of liquefied natural gas (LNG) by vessel from Canada to one or more countries with which the United States does not have a free trade agreement (FTA) requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (non-FTA countries).

Only Pieridae US’s proposed export of LNG produced from U.S.-sourced natural gas to non-FTA countries is subject to this notice. Pieridae US states that it is not proposing to construct, expand, or modify any pipeline facilities in the United States in conjunction with its proposed export of natural gas. Pieridae US requests this non-FTA export authorization for a 20-year term to commence on the earlier of the date of firstexport or seven years from the date the authorization is granted.

The Goldboro LNG Project will include two substantially identical liquefaction production facilities (i.e., “Train 1” and “Train 2”), natural gas treatment and compression equipment, LNG storage and marine loading facilities, as well as ancillary facilities. While the amount of natural gas to be exported from the US by Pieridae US pursuant to the authorization requested by this application does not precisely coincide with the amount of LNG to be produced by Train 2, Train 2’s feed requirements are expected to represent a substantial amount of the demand for the natural gas exported from the US by Pieridae US. The Goldboro LNG Project will be capable of producing approximately 10 million metric tons per annum, which is roughly the equivalent of 487 Bcf/y (or 1.33 Bcf/d) of pipeline-quality natural gas. The amount of LNG produced by the Goldboro LNG Project and the amount of US sourced natural gas that will be used as feedstock in Train 2 to produce this LNG will vary with demand for LNG abroad, the availability and cost of US natural gas, and other factors.

Common facilities for both phases will include: administration and control buildings; a short supply pipeline with metering and pigging facilities; gas treatment facilities; a natural-gas-fired,primary power generating station; and a diesel back-up power generation plant (sized for essential loads).

Pieridae CA will source natural gas from Canada for use as feedstock in the production of LNG from Train 1 for sale and export to its particular customers. However, because the natural gas sourced from Canada and the natural gas sourced from the US will be delivered to the Goldboro LNG Project at the same point on the M&N CA Pipeline, the natural gas from both sources will be physically comingled prior to processing and liquefaction.   

Pieridae US, a corporation formed under the laws of Canada, states that it is filing the application in its capacity as the sole general partner of Goldboro LNG Limited Partnership II. Both have their principal place of business in Halifax, Nova Scotia, Canada.

A project contact is: Mark Brown, Director, Project Development, Pieridae Energy (USA) Ltd., 1718 Argyle Street, Suite 730, Halifax, Nova Scotia, Canada B3J 3N6, Telephone: (902) 492-4752, Facsimile: (902) 492-5211, Email: mark.brown@pieridaeenergy.com. 

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.