Skip to main content

Pieridae Energy to purchase Shell Canada foothills-area assets

Published by
LNG Industry,


Pieridae Energy Ltd. has announced that it has signed a sale and purchase agreement (SPA) with Shell Canada Energy to acquire all of Shell’s midstream and upstream assets in the southern Alberta foothills for C$190 million, subject to normal adjustments.

The purchase price for the acquisition will be satisfied via (i) the payment to Shell of C$175 million in cash (net of adjustments), to be raised by Pieridae through the issuance of term debt and equity, as further described below, and (ii) the issuance of Pieridae common shares to Shell having an aggregate value of C$15 million (such value to be determined proximate to the time of closing of the acquisition, in accordance with the terms of the purchase agreement). Closing of the acquisition remains subject to satisfactory completion of due diligence by Pieridae on the assets. Subject to such due diligence completion, the closing of the acquisition is expected to occur in 3Q19, pending satisfaction of customary closing conditions and receipt of regulatory approvals.

“This acquisition will be immediately accretive to the company and also allows us to enhance the sustainability of our existing asset base,” said Pieridae’s Chief Executive Officer Alfred Sorensen.

“It also demonstrates solid progress for our flagship Goldboro LNG project. We said we would acquire additional gas supplies for the LNG facility and we have done that. Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry.

“But more than that, it creates a solid, ongoing foundation for the company as we continue to build toward becoming the first Canadian company to market LNG off the east coast to global consumers,” concluded Sorensen.

The conventional natural gas assets Pieridae controls are expected to allow the company to access up to US$1.5 billion in credit support from the German government under the UFK program to develop these upstream assets as part of the Goldboro LNG project.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27062019/pieridae-energy-to-purchase-shell-canada-foothills-area-assets/

You might also like

NextDecade announces SPA with China Gas

Under the 20-year Sales and Purchase Agreement, China Gas will purchase 1.0 million tpy of LNG from NextDecade’s Rio Grande LNG export project in Brownsville, Texas, US.

 
 

Embed article link: (copy the HTML code below):