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Bear Head LNG doubles initial production capacity

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LNG Industry,

Liquefied Natural Gas Limited (LNG Ltd) has announced that wholly owned company, Bear Head LNG Corp., has filed for modifications to the existing construction and environmental permits granted by the Nova Scotia Utility and Review Board and Nova Scotia Environment.

John Godbold, Bear Head LNG Chief Operating Officer and Project Director, said: "This is a major step in adapting Bear Head LNG's 12 existing construction and environmental permits to an export project. These key regulatory filings help maintain our accelerated pace in executing the project development plan."

Bear Head LNG has also confirmed that it is doubling the initial facility production capacity to 8 million tpa. "Bear Head LNG is targeting a higher rate of production capacity based on market response and gas supply projections. This change also reflects our conversations with regulatory agencies and political leaders. We have been on a fast-track from day one, with significant permitting approvals already in place and detailed level engineering and initial site construction completed," said Mr. Godbold.

The Bear Head LNG project will piggyback on design and engineering work nearing completion for the LNG export terminal under development in Louisiana by Magnolia LNG LLC, also a wholly owned subsidiary of LNG Ltd.

Ian Salmon, Bear Head LNG Chief Financial Officer and Chief Commercial Officer, said the project is investigating several options for natural gas supply: “There are 15 proven and undeveloped Significant Discovery Licenses of natural gas offshore Nova Scotia, with recoverable reserves sufficient to underpin the project. In addition, we believe there is potential to access onshore natural gas from prolific North American production basins to provide feedstock to Bear Head LNG.”

A final investment decision on the Bear Head LNG project is expected in late 2015 to 2016. LNG Ltd anticipates that the Bear Head LNG export facility could be in commercial operation in late 2018 to 2019.

LNG Ltd is also developing the 8 million tpa Magnolia LNG project at Lake Charles, Louisiana, using LNG Ltd's efficient and patented OSMR® technology. LNG Ltd purchased 100% of the stock and assets of Bear Head LNG Corp. on 27 August 2014 from a subsidiary of Anadarko Petroleum Corp. for US$ 11 million.

Adapted from press release by

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