Bear Head project gets U.S. approvals
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.