Bear Head LNG Terminal
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Bear Head LNG Terminal was a proposed LNG terminal in Nova Scotia, Canada. The plans to build an LNG terminal were scrapped in 2023 in favor of of an ammonia and hydrogen plant.[1][2]
Location
Project details
- Operator:
- Owner: Bear Head Energy Inc[3][4]
- Parent: Buckeye Partners LP[3]
- Location: Point Tupper, Richmond County, Nova Scotia, Canada[3]
- Coordinates: 45.604444, -61.3675 (approximate)
- Type: Export[3]
- Trains: 4[5]
- Capacity: 12 mtpa (presuming 3 mtpa per train)[3][6]
- Status: Cancelled[1][2]
- Start year: 2027[5]
*LNG Limited was the original parent company[8], but in May 2022, Buckeye Partners LP acquired Bear Head Energy Inc.[3]
Background
Bear Head LNG Terminal is a proposed LNG terminal in Nova Scotia, Canada.[9] The following permits have been approved for the terminal: environmental assessment; permits to build a gas plant facility from the Department of Natural Resources and the Nova Scotia Utility and Review Board; and a permit to develop from the municipal government in Richmond County.[10] It will include 2 to 4 production trains, with the individual capacities of 2–4 mtpa.[11]
As of July 2019, the project was still proceeding, but parent company Anadarko Petroleum further postponed construction. The construction start date remained to be determined.[12]
In August 2019, Anadarko Petroleum was acquired by Occidental Petroleum after Occidental outbid Chevron.[13]
In December 2019, Bear Head LNG Corporation was given a three year extension (until the end of 2022) by the Nova Scotia Utility and Review Board for the construction permit for the terminal and associated Bear Paw Gas Pipeline. Bear Head’s successful extension request cited major hurdles faced by Canadian east coast export proposals after offshore gas production ended and onshore replacements were ruled out following Nova Scotia, New Brunswick, and Quebec's bans on unconventional drilling, including hydraulic fracturing.[14]
In April 2020, Natural Gas Intel reported that securing binding offtake agreements has been a struggle for the Bear Head LNG facility due to the already high global LNG supplies.[15]
In July 2020, it was reported that construction had still not begun, and the project was for sale.[16]
In May 2022, Buckeye Partners LP acquired Bear Head Energy Inc and noted it intended to continue with the development of the project. All permits were in place, though no details about construction timeline were given.[3]
In March 2023, Bear Head Energy Inc announced that it would be reenvisioning the project as a hydrogen and ammonia facility. The LNG terminal is now considered cancelled.[1][2]
Financing
In March 2020, it emerged that the project is in financial jeopardy due to factors exacerbated by the coronavirus pandemic. Financing for LNG Limited, the Australian company responsible for the terminal, fell through. The publicly traded company was hoping for bridge loan to keep it afloat until it could be taken private by a company in Singapore.[17]
In May 2020, further doubt was cast on the project following the announcement that LNG Limited's mounting financial problems had resulted in the calling in of administrators PriceWaterhouseCoopers to review the company's assets, as well as the resignation of four LNG Limited directors.[18]
Articles and resources
References
- ↑ 1.0 1.1 1.2 Natural Gas Intelligence. Bear Head’s Canadian East Coast LNG Project Now Looks to Export Hydrogen. March 24, 2023.
- ↑ 2.0 2.1 2.2 gasworld (2023-04-17). "Bear Head Energy (BHE) to create ammonia/hydrogen plant". gasworld. Retrieved 2023-08-23.
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 "Buckeye acquires Bear Head LNG, will offer lower-carbon energy solutions". Oil & Gas Journal. Retrieved 2022-05-09.
{{cite web}}
: CS1 maint: url-status (link) - ↑ "Bear Head LNG Project". Hydrocarbons Technology. Retrieved 2022-05-09.
{{cite web}}
: CS1 maint: url-status (link) - ↑ 5.0 5.1 5.2 Application for Long-Term Authorizations to Export Natural Gas to Canada Department of Energy, February 15, 2015
- ↑ "Bear Head seeking NEB OK to export 12 mtpa from Nova Scotia". Natural Gas Intelligence. Retrieved 2022-05-09.
{{cite web}}
: CS1 maint: url-status (link) - ↑ "GIIGNL 2021 Annual Report”, page 38, GIIGNL, accessed May 4, 2021.
- ↑ Project History LNG Limited, accessed April 27, 2020
- ↑ Bearhead LNG Terminal, A Barrel Full, accessed April 2017
- ↑ Bear Head LNG, LNG, The Energy Link, accessed May 2017
- ↑ Bear Head LNG Project, Richmond County, Nova Scotia Hydrocarbons Technology, accessed July 18, 2019
- ↑ Bear Head LNG in hibernation Upstream, July 1, 2019
- ↑ Anadarko Petroleum Wikipedia, July 1, 2019
- ↑ Gordon Jaremko, Bear Head LNG Project Granted Extension by Nova Scotia Regulator Natural Gas Intel, December 11, 2019
- ↑ Jamison Cocklin, Scuttled Deal May Threaten Magnolia, Bear Head LNG Projects Natural Gas Intel, April 14, 2020
- ↑ "Bear Head LNG for sale". Energy NL. 2020-07-27. Retrieved 2022-05-09.
- ↑ Clark Williams-Derry, IEEFA update: Financial prospects falter for LNG projects, IEEFA, Apr. 24, 2020
- ↑ The Offtake: LNG in Brief, Natural Gas Intel, May. 1, 2020