Issue link: http://resourceworld.uberflip.com/i/1099276
56 www.resourceworld.com A P R I L / M A Y 2 0 1 9 Oil Patch Report by Bruce Lantz W hile all eyes have been focused on Canada's west coast and the various lique- fied natural gas (LNG) terminals proposed for there, one project on the nation's east coast has been moving steadily forward. Pieridae Energy Ltd.'s [PEA-TSVX] LNG plant, expected to cost up to US $10 billion, including upstream develop - ment, and to be situated on 107.5 acres in the Goldboro Industrial Park on Nova Scotia's eastern shore about 180 km north- east of Halifax, has been in the works for several years. Pieridae, a majority Canadian-owned corporation founded in 2011 and based in Calgary, Alberta, with offices in Quebec City and Halifax, NS, is focused on the development of integrated energy-related activities from the explora - tion and extraction of natural gas to the development of the Goldboro LNG facility. The company hopes to eventually export 1.3 billion cubic feet of natural gas per day in 7-13 shipments from Goldboro to Europe, allowing nations there to diver - sify their gas supply, along with markets in South America and Asia. Goldboro is slated to produce about 10 million metric tonnes of LNG per year, according to its website, and have on-site storage capac - ity of 690,000 cubic metres of LNG. A deal with Germany's Uniper SE [UN01- FSE] will see it get about half Goldboro's output, and more agreements are expected with other European utilities. Pieridae has purchased Quebec-based Petrolia and acquired Ikkuma Resources out of Calgary. Pieridae continues to look at further acquisitions and/or mergers with several Alberta natural gas producers. While reluctant to discuss details at this stage, the company is Canada's only integrated LNG venture holding all key permits and approvals for its current stage of development. Pieridae is eyeing completion of construction in late 2023. Up to 3,500 jobs will be created during the construction phase, while 200 jobs will be created during the operational phase. Significantly, the company signed a benefits agreement in early February with the Mi'kmaq First Nation of Nova Scotia which establishes the framework under which the Mi'kmaq will benefit economically from the Goldboro project, featuring ongoing engagement and rela - tionship building. "We are looking forward to collaborating with the Mi'kmaq of Nova Scotia, and their leadership, in realizing for them the ben- efits of this important project," said Pieridae CEO Alfred Sorensen in a news release. "As we look to ensure responsible devel- opment and environmental stewardship that reflect a Mi'kmaq voice, it's important that we can bridge that gap with indus- try," said Chief Terrance Paul, co-chair of the Assembly of Nova Scotia Mi'kmaq Chiefs in the release. "This agreement with Pieridae is an example of how compa- nies can respect our Mi'kmaq Rights and Title, and also provide an opportunity for Mi'kmaq participation on our lands." The natural gas will come by TransCanada Corporation's [TRP-T] pipeline system from Alberta and via the 1,400-km Maritimes and Northeast Pipeline from Maine, ending directly adja - cent to the Goldboro site. "We believe we have met all the sig- nificant challenges," said Mark Brown, Pieridae's Vice-President of Business Development, adding that the company is still working to secure more financing. With that in mind, Pieridae recently closed a brokered private placement of common shares for gross proceeds of $15.2 million and partially closed a non-brokered private placement of common shares for another $2.7 million – a $17.9 million total. Pieridae Energy to build Goldboro LNG plant An artist's rendering of Pieridae Energy's proposed Goldboro LNG plant on Nova Scotia's eastern shore. Image courtesy Pieridae Energy Ltd.