Bear Head LNG
Bear Head LNG Corporation, a wholly owned subsidiary of LNGL, is developing an 8 mtpa or greater LNG export terminal in Nova Scotia. The 327-acre site is located on the naturally deep waters of the Strait of Canso in Point Tupper, Richmond County, Nova Scotia. The prior owners of Bear Head LNG spent more than $100 million to design, complete engineering work, and development of the Bear Head LNG site in the early 2000s – all part of the assets Bear Head LNG is leveraging.
Bear Head LNG has obtained Canadian federal, provincial, and local regulatory approvals to construct a liquefied natural gas export facility. All of 10 initial Canadian permits are in place, including an Approved Environmental Assessment; a Permit to Construct a gas plant facility from both the Department of Natural Resources and the Nova Scotia Utility and Review Board; and a development permit from the municipal government in Richmond County; a TERMPOL Review Report on the Bear Head LNG Project; and a Federal Department of Fisheries Section 35 Authorization.
Canada's National Energy Board (NEB) has granted Bear Head LNG authorization to import natural gas from the U.S. and to export up to 8 mtpa of LNG from Canada, with authority to expand to up to 12 mtpa in the future.
The U.S. Department of Energy (DOE) has granted Bear Head LNG authority to export LNG derived from U.S. produced natural gas to countries with which the U.S. has free trade agreements (FTA) and to all countries with which trade is not prohibited by U.S. law or policy (Non-FTA).
Feed gas supply is expected to come from a combination of Canadian and U.S. producers. Bear Head LNG provides a viable, economically competitive option for Western Canadian Basin gas producers to monetize their production in the international LNG market, essentially an option for Western Canadian resource owners that have found west coast Canadian LNG projects too costly.
Bear Head LNG has retained KBR Inc. (KBR) to develop Front End Engineering & Design (FEED) for the Bear Head terminal. Bear Head is looking to gain design and development efficiencies by using KBR to perform FEED. KBR is a global leader in LNG engineering and is a party to a the signed Engineering, Procurement and Construction (EPC) contract with Magnolia LNG LLC, a sister company of Bear Head LNG Corporation, which is developing the Magnolia LNG export terminal in Lake Charles, Louisiana.
The Bear Head LNG export terminal location is about half the shipping distance to major European markets compared to U.S. Gulf ports, and is closer than its North American competitors, including those in British Columbia, to other major LNG markets including burgeoning natural gas markets in India and Argentina.