Liquefied Natural Gas Ltd has doubled the planned size of its LNG export venture planned for Canada's Nova Scotia coast, citing feedback from potential gas suppliers and LNG buyers, and discussions with regulators and political leaders.
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The 8 million tonnes a year of export capacity now envisaged for the Bear Head LNG venture is on a fast-track to development, with some permitting approvals already in placed, and detailed engineering and initial site construction completed, ASX-listed LNG Ltd said on Monday.
Bear Head is the second LNG export project being developed by LNG Ltd., the first being the Magnolia venture in Louisiana on the US Gulf Coast. A final investment decision is targeted for late 2015 or 2016, with commercial operations potentially in late 2018 or 2019.
Ian Salmon, LNG Ltd's chief financial and commercial officer for the Canadian project, said the venture was investigating several options for gas supply for the venture. He pointed to 15 proven and undeveloped significant discoveries offshore Nova Scotia with adequate reserves to underpin the Bear Head venture.
LNG Ltd only acquired the Bear Head venture in late August from Anadarko Petroleum for $US11 million but the venture has several permits already in place related to an old import project planned by the US company. It has now filed for modifications to the existing permits to reshape the venture as an export project.
Shares in LNG Ltd., by far the best performing stock on the ASX benchmark index this year, jumped as much as 3.5 per cent in early trading on Monday to $3.85. The stock has enjoyed major support from some high-profile US investors, several of which have taken significant stakes in the company this year.
