Australian company nears approvals for Nova Scotia LNG export project

Liquefied Natural Gas Ltd. (ASX: LNG; OTC ADR: LNGLY) said March 16 that its wholly owned subsidiary, Bear Head LNG Corp., has received a permit to construct its proposed 8 million tonnes per annum LNG project from the Nova Scotia Utility and Review Board (UARB).

The final approval required, from the Nova Scotia Environmental Board, is expected in the second quarter of 2015. Company Managing Director and President of Bear Head LNG, Maurice Brand, said that the project was making excellent progress with all permits and approvals with the objective being permitting completion by June 30. “We are continuing to make very good progress on gas supply to Bear Head and are actively marketing the project with a number of LNG buyers, “said Brand.

The UARB had first permitted Bear Head LNG as an LNG import facility in 2005. Facilities were partially constructed and have been kept in “hot-idle” status since 2008. The UARB previously granted extensions of the permit to construct in 2009 and 2013.

The Bear Head LNG project will have an initial production capacity of 8 million tons per annum (mtpa) of export LNG. If the regulatory process continues to advance without major delay the facility would be in operation by 2019. The Bear Head LNG site is located on the Strait of Canso in Point Tupper, Richmond County, Nova Scotia, which is about half the shipping distance to major European markets compared to U.S. Gulf Coast ports, and is closer than its North American competitors, including those in British Columbia, to other burgeoning natural gas markets such as India. The Strait of Canso provides an ice-free natural deepwater port with direct access to the North Atlantic.

The proposed Bear Head LNG facility will have an annual production capacity of approximately eight (8) million metric tonnes per annum (mtpa), and will employ the highly efficient and patented Optimized Single Mixed Refrigerant (OSMR) technology developed by LNGL. The facility will use four LNG trains, each with an approximate operating capacity of 2 mtpa.

The total power requirement will be approximately 72.5 MW per LNG train. Of this total, approximately 66 MW will be generated by direct drive gas turbines that will drive the mixed refrigerant compressors. Total power production requirements on site will be approximately 264 MW. To improve performance of the liquefaction process, waste heat from the gas turbine exhausts will be used to produce steam for turbines that will drive the ammonia refrigeration plant within each train. The likely requirements for power from the grid will therefore range between 27 MW, during normal operating hours, and 31 MW during export vessel loading periods. Electrical power transmission would come through local utility Nova Scotia Power.

Liquefied Natural Gas Ltd. is an Australian listed company focused on development of mid-scale LNG plants. LNGL’s business strategy aims to deliver lower capital and operating costs, faster construction timelines and improved efficiency, relative to larger traditional LNG projects.

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.