Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Canada's Pieridae in talks with govt, TC Energy to ensure LNG project supply

(Reuters) - Pieridae Energy, one of the companies proposing an LNG gas terminal on Canada's east coast, has asked the federal government to help ensure pipeline operator TC Energy would be able secure permits to expand gas supply pipelines in a timely fashion.

Pieridae Chief Executive Alfred Sorensen told Reuters its Goldboro LNG project can only go ahead if TC expands capacity on its existing pipeline network.

"There's no other way. Without TC Energy there is no Goldboro LNG project," Sorensen told Reuters.

Since Russia's invasion of Ukraine triggered a global scramble for gas, European policymakers have looked to Canada as a potential new and reliable LNG supplier due to its abundant reserves and proximity to Europe.

But limited pipeline capacity has emerged as the main stumbling block for plans to ship gas from western Canada to the Atlantic Coast, where it could be liquefied and loaded onto tankers for export to Europe.

Calgary-based Pieridae has proposed building a 2.4 MMtpy export terminal in Nova Scotia, which would cost around $3 billion and begin shipping in 2027, if construction could start next year. Spanish company Repsol is also considering an LNG export terminal in New Brunswick.

However, TC's existing pipeline network is not large enough to ship the amount of gas that would be required.

TC did not respond to questions about discussions with Pieridae, but in a statement to Reuters said it has "virtually no spare capacity" on its pipelines due to high energy demand.

At a recent meeting, Pieridae asked the federal government to help ensure the regulatory process for any pipeline proposal from TC is clear and does not get derailed by legal challenges or protests from outside groups.

"We've made our pitch and now we just have to wait and see. We've also been speaking to TC Energy, and they have to be the guys who decide to go first," Sorensen said.

A spokesman for Natural Resources Minister Jonathan Wilkinson did not directly comment on the Pieridae project.

"Canada was one of the first countries to commit to increase oil and gas exports after the illegal invasion of Ukraine, and we continue to work with international partners to bolster global energy security," spokesman Keean Nembhard said.

Many oil and gas industry players say Canada's regulatory process for new pipelines is too lengthy and onerous, while environmental groups argue past projects were not properly scrutinized.

"The government is happy and keen to work with private sector to reduce friction in the regulatory process, but we're not about to circumvent the regulatory process, or change it. We have confidence in it. And we're not going to make uneconomical projects economical," said a government source who was not authorized to speak on the record.

The federal government has overhauled its environmental review process for major projects, but TC previously scrapped its Energy East and Keystone XL oil pipelines after years of delay.

Energy East encountered fierce public opposition and regulatory hurdles, while U.S. President Joe Biden followed through on a campaign pledge to revoke the permit on KXL.

TC's Coastal GasLink pipeline in British Columbia, which was subject to a provincial regulatory review and will supply the Shell-led LNG Canada project, is nearly 75% complete but facing ongoing protests from First Nations.

(Additional reporting by Steve Scherer in Ottawa; Editing by Denny Thomas, Jonathan Oatis and Marguerita Choy)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Lee Nichols
Modern society would not be possible without the use of pipelines to transport natural gas, crude oil and finished products to demand centers.


Optimizing Gas Distribution: Accounting for Changeovers, Regulators, and More

Register Now

Gas distribution systems are critical to the effective operation of many industrial facilities around the world. Despite the importance of these systems, however, opportunities to improve their performance and cost-effectiveness are often missed or misunderstood. Increasing changeover pressure may seem like a good way to improve system flow, for example, but it often does so at the expense of bottled gas. Adding regulators may help you control supply pressure, but it also adds cost to your system. So, how do you know what the ideal gas distribution setup is for you?

Attend this webinar to:

  • Gain a basic understanding of the fluid dynamics that affect pressure control in gas distribution systems, learning to interpret flow curves and recognize phenomena like lockup, droop, and supply pressure effect (SPE)
  • Learn how inlet pressure affects regulator performance and when to specify certain regulator types and configurations to effectively control gas system pressures

Understand the inherent trade-offs between gas utilization and flow capacity and how to select both the right changeover pressure and automatic changeover panel design for your operations.

May 4, 2021 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2022 Gulf Publishing Holdings LLC.