Axpo signs LNG sales and purchase deal with Pieridae Energy

Swiss trading company Axpo has agreed preliminary terms for a 10-year sales and purchase agreement to receive LNG from Pieridae Energy’s new Canadian liquefaction terminal.

The Goldboro terminal in Nova Scotia is scheduled to launch in 2023. The facility is expected to produce 10 million mt of LNG per year and have onsite storage capacity of 690,000 cbm.

Under the agreement Axpo would purchase the LNG from the second train of the Goldboro facility and sell it to European markets.

“With this contract, Axpo further diversifies its supplies and cements its LNG ambitions. It supplements the current shorter-term focused global LNG portfolio which last year physically supplied 1.2 mtpa,” said Domenico De Luca, head of Axpo Trading.

Meanwhile, Pieridae Energy is on track to green light its $10-billion Goldboro LNG project.

“The next couple of weeks will be critical for the project,” Pieridae CEO Alfred Sorensen told the Financial Post, adding that he’s expecting a construction permit from Nova Scotia’s government and finalised agreements with contractors by the end of August.

In addition, Alfred said Pieridae is close to signing a deal to merge with an Alberta-based natural gas producer, which would given Pieridae natural gas supply for its Goldboro LNG export facility.

Once the construction permit, contractor agreements and merger is announced, the company is planning to begin construction by the end of the year on the terminal 150km northeast of Halifax, where natural gas from southern Alberta would be chilled until it reaches its liquid state before shipping the product to a utility company in Germany.

The construction start date could make Goldboro LNG the first project of its kind in Canada to reach the milestone after a series of delays and project cancellations at LNG project planned for British Columbia’s coast.

For more information, visit: www.pieridaeenergy.com

17th August 2018