Bear Head owner has raised first $38M

Nancy King
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Liquefied Natural Gas Ltd. managing director says company has made 'significant commitment'

BEAR HEAD — Maurice Brand says he understands that some people may skeptically eye another announcement regarding a liquefied natural gas site development at Bear Head.

Schematic site layout for the proposed Bear Head LNG export project, near Port Hawkesbury. Liquefied Natural Gas Limited of Australia announced Monday it is buying the project for $11 million.

The managing director of Australia-based Liquefied Natural Gas Ltd., which announced Monday it is buying the Bear Head site from Anadarko Petroleum for $11 million, said in an interview Tuesday his company is prepared to announce Wednesday that it has successfully raised the first $38 million it will spend on the project. In total, the Bear Head project will cost about $2.2 billion. The initial investment is expected to carry it through to early 2016.

“That’s absolute risk money — we lose it if the project doesn’t proceed,” Brand said.

“It’s a significant commitment.”

Anadarko had planned to build a $500-million liquefied natural gas import terminal to supply natural gas to the Maritimes and Northeast pipeline in 2008, breaking ground a decade ago. The company slowed construction after it failed to secure a long-term stranded gas supply. The company had already spent $110 million on site development, concrete work for the tanks and permitting for the project.

Anadarko mothballed the project in 2005.

The new proposal is for an export terminal. The work already done at the site and the decision to start small and scale up if the gas supply becomes available makes the project affordable and gives it an edge over other proposals, Brand said. While other projects in the works propose producing four million tonnes of product annually, Bear Head would start at half that amount.

“What differentiates us from the other projects to a large extent is that we can make a two-million tonne LNG project financially viable,” Brand said. “Other projects are looking for at least four million tonnes, but we can start off in increments of two million tonnes.

“Putting all that together, it made the capital cost numbers work.”

It is expected to create 45-70 permanent jobs, 175 indirect permanent jobs and 600-700 construction jobs.

“I think it will be quite a sizable project for the region and there’s no reason by 90-odd per cent of these positions can’t be filled by local folk,” Brand said.

Earlier, Brand said Bear Head features a good location, level site, needs no dredging, is already zoned for industrial development, and there is existing pipeline infrastructure.

“Some of these projects are very difficult in remote areas where you have limited gas supply,” Brand said. “Sometimes you’ve got to start small and build rather than trying to get all of that together in order for a megaproject to go ahead.

“The important thing for the county and Nova Scotia is that these projects actually commence. There’s obviously many discussions or opportunities but sometimes they just don’t happen.”

Brand said they are determined to kick off the project off as quickly as possible, noting construction would take 36-42 months, with production beginning in 2019. In the short term, work will focus on the permitting sourced approvals needed, engineering work and securing gas arrangements. The gas supply will have to be settled within the next nine to 12 months, then construction would begin in early 2016

“The challenge will be the timeline to get gas to our site,” Brand said. “We’re not worried about not getting gas, it’s just a matter of timing.”

Possible sources of gas include shale gas an option in the short term, coal seam gas in the medium term option, and offshore gas such that produced at Deep Panuke is also an option, Brand said.

There are other groups working on a couple of proposals for other liquefied natural gas facilities in Guysborough County.

 

nking@cbpost.com

 

 

 

 

 

 

 

 

 

Organizations: Anadarko Petroleum, Liquefied Natural Gas

Geographic location: Nova Scotia, Guysborough County.nking

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  • RE Think
    July 31, 2014 - 16:27

    ..NIMBY IS OUR EARTH clammer frother......and MR Brand....have your investors not heard...NOVA SCOTIANS have no plans to allow shale gas or coal bed methane gas to continue being developed in our province...you have a CHOICE Mr Brand...work with the natural gas pipeline offshore or stay home ...if that is not viable YOUR INVESTORS should reconsider ....we have clean technology to invest in not the fossil fuel emissions you kill the CHILDREN of THE World with....even with the LNG plant the NIMBY area and THE AIR of our whole Earth area will be polluted with benzene, a carcinogen and other toxic substances..just look at the long term projections in the environmental assessment....WAKE UP Nova Scotia, there will be more employment building wind. solar and tidal...the rest of the world is making the shift to clean technologies...they are all now ready.... so the time to rebuild our energy sources in now to stop the pollution killing our children...perhaps you should invest your money is a socially responsible and ethical project instead..

  • clamfroth
    July 30, 2014 - 13:03

    Lets see whos first to comment with NIMBY. The same people who complain about the lack of work probably.