Bear Head LNG Corp. has filed an application with Canada’s National Energy Board (NEB) for an export license for up to 12 mtpa of liquefied natural gas (LNG). The application also seeks a license to import up to 503Bcf of natural gas annually from the United States. Bear Head LNG is seeking licenses for a 25-year term.
Under the NEB filing, exports would be authorized at 8 mtpa beginning in 2019, increasing to 12 mtpa in 2024 depending on market and supply conditions. Bear Head LNG had initially proposed start‐up production of only 4 mtpa of LNG, stepping up to 8 mtpa in 2021 and 12 mtpa in 2024.
According to Bear Head LNG, the decision to expand the initial capacity of the facility was based on market response and gas supply projections. The market is stronger than the Bear Head LNG anticipated and it is well-positioned to meet customer needs.
Bear Head LNG already has 12 permits in place to build an LNG import facility, including an approved environmental assessment; permits to construct a gas plant facility from Nova Scotia Environment (NSE) and the Nova Scotia Utility and Review Board (UARB); and a Development Permit from the municipal government in Richmond County. Modifications for the conversion from an LNG import to export facility were the subject of regulatory filings presented to the UARB and NSE on 31 October.
The Bear Head LNG site is located on the Strait of Canso near Point Tupper, Richmond County, Nova Scotia, which is about half the shipping distance to major European markets compared to US Gulf ports. The location puts Bear Head LNG closer than its North American competitors, including those in British Columbia, to natural gas markets in India.
Image from Bear Head LNG.