Bear Head LNG Corp. and Bear Head LNG USA LLC, both subsidiaries of Liquefied Natural Gas Ltd., have filed an application with the U.S. Department of Energy (DOE) to export gas to Canada, the companies said in a Feb. 25 release.
In the application, the companies requested authorization to export up to 440 billion cubic feet (Bcf) per year of U.S. natural gas to Canada, and up to 8 million tonnes per annum (mtpa) of LNG from Canada to free trade agreement (FTA) and non-FTA nations.
The DOE application is in addition to a Jan. 23 DOE filing to import Canadian gas and re-export it back to Canada and replaces the application submitted to the DOE on Dec. 9. Once the two applications are approved, Bear Head will have access to vast North American natural gas supplies, including Western Canada, and the Appalachian, Gulf of Mexico, and Rocky Mountain regions of the U.S.
Bear Head said it's optimistic that the DOE and the Canadian government are vested in a streamlined regulatory framework that enables exports of U.S. natural gas to Canada, and of LNG from Canada to FTA and non-FTA nations, in a manner that is consistent with statutory obligations and promotes economic policy and trade relations for both nations.
John Godbold, Bear Head LNG's COO and project director, said in a statement, “Our goal has been, and continues to be, to achieve a solution that bridges the North American Free Trade Agreement, U.S. Natural Gas Act, and U.S. Natural Environmental Policy Act [NEPA]. We have conducted considerable additional studies and analysis in order to comply with such a framework and satisfy all of the related regulatory requirements.”
Bear Head LNG has also requested authorization from Canada's National Energy Board to export up to 8 mtpa of LNG in 2019 with an expansion to 12 mtpa in 2024. Since Bear Head LNG has only requested the export of 8 mtpa from the U.S., at least 4 mtpa would need to be provided by Canadian sources if Bear Head LNG is to reach the 12 mtpa target. Potential Canadian sources include Western and Central Canada, onshore in the Maritimes provinces, and offshore Nova Scotia.
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.
Recommended Reading
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
Chord Energy Updates Executive Leadership Team
2024-03-07 - Chord Energy announced Michael Lou, Shannon Kinney and Richard Robuck have all been promoted to executive vice president, among other positions.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.