Bear Head LNG requests DOE permits to export US natural gas

Liquefied Natural Gas Ltd.’s wholly owned subsidiaries, Bear Head LNG Corp. and Bear Head LNG LLC (USA), have filed an application with the US Department of Energy requesting authorization to export as much as 440 bcf/year of US natural gas to Canada and 8 million tonnes/year of LNG from Canada to free-trade agreement and non-FTA nations. This application is in addition to one filed Jan. 23 to import gas from Canada and then re-export it back, and replaces the application submitted Dec. 9 to the DOE.

Bear Head has also requested authorization from Canada’s National Energy Board to export up to 8 million tpy of LNG in 2019, with an expansion to 12 million tpy in 2024. This would require gas for at least 4 million tpy from Canadian sources, as Bear Head has only requested enough for 8 million tpy from the US.

Potential sources of domestic supply include western and central Canada, onshore in the Maritime provinces, and offshore Nova Scotia. John A. Godbold, Bear Head LNG chief operating officer and project director, addressing Platts annual LNG Conference, said the project could source gas from Alberta via underused TransCanada Corp. pipelines at the same price it would cost to send it to the Pacific Coast.

Bear Head is on the Strait of Canso in Point Tupper, NS, about half the distance to major European markets as US Gulf Coast ports, and is closer than other North American LNG projects to both Argentina and India, according to Godbold.

The company expects imminent approval of its permit to construct and to have all Canadian permitting in place this quarter, Godbold said. Bear Head plans a final investment decision next year to begin operations in 2019.

Contact Christopher E. Smith at [email protected].