Liquefied Natural Gas Ltd. (LNGL) announced that it has significantly expanded its presence in the North American LNG sector by agreeing to acquire 100% of Bear Head LNG Corp. from an Anadarko Petroleum Corp. subsidiary for US$11.0 million.
The Bear Head LNG Project is located in Richmond County, Nova Scotia, Canada. Key assets include:
- A 255‐acre site including 180 acres of industrial‐zoned land and 75 acres of deepwater acreage, as well as foundations in place for two 180,000 cubic meter LNG tanks. The land has been cleared, a majority of site works completed and roads constructed; and
- The project rights of the previously proposed LNG import terminal, including all assets, rights and obligations associated with the Bear Head project.
LNGL plans to transition Bear Head into a 4 million-ton-per-year LNG export facility with potential for future expansion. It has already developed a gas supply plan and a transportation plan and has interest from several parties to enter into tolling agreements.
LNGL is negotiating with gas transportation companies and owners of gas reserves concerning the supply of natural gas from onshore and offshore Canadian natural gas supply options and the Marcellus Shale play to the Bear Head LNG project site.
As part of this transaction and once it is completed, LNGL will appoint John Godbold as COO and project director of Bear Head LNG Corp. He will be responsible for the project and report to LNGL’s managing director Maurice Brand. Ian Salmon will also be appointed CFO and Chief Commercial Officer.
The acquisition is subject to standard closing conditions and consents. It is expected to close on or before Aug. 31, 2014.
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