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Pieridae comments on recent trading and maintains momentum for Goldboro LNG project

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LNG Industry,


In light of its recent share price decline, Pieridae has confirmed that there have been no material adverse changes in its business.

As Pieridae’s management does not believe the current trading price of the Corporation’s shares properly reflects the inherent value of the Corporation’s investments, management reiterates that key project milestones achieved for its flagship Goldboro LNG Project are still firmly in place. Those milestones are:

  • All major regulatory, environmental, import/export and construction permits are in place.
  • Pieridae has signed a 20-year sales agreement with German utility Uniper worth approximately US$35 billion.
  • The German government is supportive of the project, declaring it eligible in principle for up to US$4.5 billion in loan guarantees.
  • Pieridae owns natural gas assets in the Alberta Foothills, allowing it to maximise financial success.
  • Arrangements are in place to use existing pipelines to transport the natural gas from Western Canada to the Goldboro facility’s front door.
  • The company has key assets in Québec and it continues to look for ways of developing those assets.
  • Pieridae continues to work with global engineering firm Kellogg Brown & Root Limited (KBR) to review an amended version of the previously prepared front-end engineering and design (FEED) study for Goldboro. KBR will also conduct an open-book estimate necessary for entering into a lump sum turnkey engineering, procurement and construction (EPC) contract.
  • • A benefits agreement has been signed with the Assembly of Nova Scotia Mi’kmaq Chiefs. The agreement means the Mi’kmaq will benefit economically from the development, construction and operation of the facility.

“I want to be clear: nothing has fundamentally changed with our Goldboro LNG project. We continue to take steps to move the project forward and our business model remains sound,” said Pieridae CEO Alfred Sorensen, “Specifically, the German government loan guarantees have not changed, we have negotiated arrangements with pipeline companies to transport natural gas to Goldboro, the Canadian Mainline continues to operate at less than half capacity and there is plenty of space to move our gas to the East Coast. Finally, pipelines across the country already exist, no new pipelines are needed to bring the gas to Nova Scotia, and we maintain a respectful relationship with all stakeholders.”

Pieridae continues to discuss financing options for the project as well as looking for new Alberta natural gas supplies to fill out the gas needed for the first facility or Train 1 at Goldboro. The company expects to start construction activities for Goldboro LNG in 2019 and ship first gas overseas to meet the expected global LNG shortfall in 2023/2024.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10052019/pieridae-comments-on-recent-trading-and-maintains-momentum-for-goldboro-lng-project/

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LNG project news Canada LNG news Natural gas news Current LNG projects