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.