The U.S. Department of Energy (DOE) granted Bear Head LNG Corp. and Bear Head LNG (USA) LLC authorization to export up to 440 billion cubic feet (Bcf) per year of U.S. natural gas to Canada, and up to eight million tonnes per annum (mtpa) of LNG from Canada to free trade agreement (FTA) countries, a July 17 press release said. Both companies are subsidiaries of Liquefied Natural Gas Ltd.

"This is an important step in achieving certainty of gas supply for the Bear Head project," said John Godbold, project director. "The U.S. Department of Energy is implementing a regulatory framework that promotes trade and economic growth while balancing the provisions of the North American Free Trade Agreement, the U.S. Natural Gas Act and the U.S. National Environmental Policy Act."

Bear Head also applied for DOE authorization to non-FTA countries.

Godbold also said that Bear Head LNG is the first proposed Canadian LNG export facility to be recognized by the U.S. Federal Energy Regulatory Commission as an approved Canadian LNG export project. In May 2015, Bear Head LNG Corp. obtained the last of the 10 initial federal, provincial and local regulatory approvals needed to construct the facility on the Strait of Canso in Nova Scotia.

Bear Head LNG Corp. applied to Canada's National Energy Board (NEB) for authority to import natural gas from the U.S. and export up to 8mtpa of LNG in 2019 from Canada, with expanded authority to 12mtpa in 2024.

Bear Head LNG Corp. also applied to the DOE for authority to import 250Bcf/year of Canadian natural gas for delivery to Bear Head’s proposed LNG export facility. This gas will be in transit via pipeline through the U.S. and go back to Canada for delivery to the facility.

This authorization would allow a portion of Bear Head LNG’s natural gas requirements to come from sources in western and central Canada, enhancing commercial supply options.

Maurice Brand, president of Bear Head LNG, said there are plans for a final investment decision in 2016. He added that the company expects the DOE and Canada’s NEB will approve all measures.