Bear Head pro­ject gets U.S. ap­provals

Cape Breton Post - - BUSINESS -

The United States Depart­ment of Energy has granted the Bear Head LNG pro­ject au­tho­riza­tion to ex­port Amer­i­can nat­u­ral gas to Canada.

In May, Bear Head LNG Corp. ob­tained the last of the 10 ini­tial fed­eral, pro­vin­cial and lo­cal reg­u­la­tory ap­provals needed to build the fa­cil­ity lo­cated on the Strait of Canso.

Fri­day’s move gives Bear Head LNG Corp. and Bear Head LNG (USA) au­tho­riza­tion to ex­port up to 440 bil­lion cu­bic feet per year of Amer­i­can nat­u­ral gas to Canada, and up to eight mil­lion tonnes per an­num of liq­ue­fied nat­u­ral gas from Canada to free trade agree­ment coun­tries.

Bear Head LNG now an­tic­i­pates a de­ci­sion in the near fu­ture on its ap­pli­ca­tion for au­tho­riza­tion to ex­port LNG to non-free trade agree­ment coun­tries.

John God­bold, Bear Head pro­ject di­rec­tor, said in a press re­lease that only two in­ter­ven­tions of mi­nor sub­stance were filed dur­ing the 60-day com­ment pe­riod on Bear Head LNG’s non­free trade agree­ment ap­pli­ca­tion.

God­bold also stated that Bear Head LNG is the first pro­posed Cana­dian LNG ex­port fa­cil­ity to be rec­og­nized by the U.S. Fed­eral Energy Reg­u­la­tory Com­mis­sion as an ap­proved Cana­dian LNG ex­port pro­ject.

The com­pany has also ap­plied to Canada’s Na­tional Energy Board for au­thor­ity to im­port nat­u­ral gas from Amer­ica and to ex­port liq­uid nat­u­ral gas in 2019 from Canada, with ex­panded au­thor­ity in 2024.

There are also ap­pli­ca­tions to the U.S. Depart­ment of Energy for au­thor­ity to im­port for sub­se­quent ex­port up of Cana­dian nat­u­ral gas by pipeline that is in transit through the U.S., back into Canada for de­liv­ery to Bear Head LNG’s pro­posed liq­ue­fied nat­u­ral gas ex­port fa­cil­ity.

An au­tho­riza­tion would al­low a por­tion of the Bear Head LNG’s nat­u­ral gas re­quire­ments to come from sources in Western Canada and cen­tral Canada.

“Great strides have been made in mov­ing Bear Head LNG to­ward a fi­nal in­vest­ment de­ci­sion dur­ing 2016 as we con­tinue to re­ceive reg­u­la­tory cer­tainty for our fa­cil­ity,” said Bear Head LNG pres­i­dent Mau­rice Brand said in a press re­lease.

Con­struc­tion of the lo­cal fa­cil­ity is ex­pected to be­gin next year, with oper­a­tions to start in 2019.

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