Pieridae Energy is all set to secure financing of up to $1.5bn for its Goldboro liquefied natural gas project (Goldboro LNG project) in Nova Scotia, Canada from the German government’s UFK program.
The Canadian energy company said that it was given a written confirmation of eligibility for the German funding for the upstream activities within the Goldboro LNG project.
The $10bn Goldboro LNG project to be developed at the Goldboro Industrial Park in Guysborough County will comprise an LNG processing facility, storage tanks and marine works.
The Canadian energy company said that the German confirmation satisfies a key condition leading to the completion of its previously proposed merger with Ikkuma Resources. At the same time, the German funding is also a major milestone in advancing the Goldboro LNG project towards a final investment decision, said Pieridae Energy.
The prospective $1.5bn loan from the German government to Pieridae Energy adds to a similar confirmation of UFK eligibility it had made to offer a loan of up to $3bn for the proposed financing of the construction of Goldboro LNG train 1 and all related facilities.
Pieridae Energy CEO Alfred Sorensen said: “We are extremely pleased with the additional support that Pieridae is eligible to receive from the German federal government in regard to the proposed Goldboro LNG facility and its integration with upstream natural gas development.
“This latest announcement from the German government advances our objectives of completing the Company’s acquisition of Ikkuma and reaching a positive financial investment decision for the integrated Goldboro LNG project.”
The loan from the UFK program will be subject to several aspects, including a commitment that a specified amount of the annual LNG production from the Goldboro LNG project for 20 years will be delivered to, and be regasified in, Europe.
In 2013, a 20-year agreement was signed with Uniper Global Commodities to sell nearly five million tons per annum of LNG produced from train 1 of the Goldboro LNG project.
The proposed LNG facility will be fed with natural gas from the existing Maritimes & Northeast Pipeline, located directly adjacent to it. The target markets for the LNG produced at the Goldboro LNG project are Europe, Asia and South America.