Bear Head LNG receives US DOE approval of exports to FTA countries

The US Department of Energy (DOE) has granted Bear Head LNG Corp. and Bear Head LNG (USA) LLC (together, Bear Head LNG) authorization to export up to 440 billion cubic feet (bcf) per year of US natural gas to Canada, and up to 8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Canada to Free Trade Agreement (FTA) countries.

"This is an important step in achieving certainty of gas supply for the Bear Head project," said John Godbold, Bear Head project director. "The US Department of Energy is implementing a regulatory framework that promotes trade and economic growth while balancing the provisions of the North American Free Trade Agreement, the US Natural Gas Act, and the US National Environmental Policy Act."

Bear Head LNG anticipates a decision in the near future on its application for DOE authorization to export LNG to non‐FTA countries. Godbold noted that only two interventions of minor substance were filed during the 60‐day comment period on Bear Head LNG's non‐FTA application.

Godbold also noted that Bear Head LNG is the first proposed Canadian LNG export facility to be recognized by the US Federal Energy Regulatory Commission as an “approved” Canadian LNG export project. In May, Bear Head LNG Corp. obtained the last of the 10 initial federal, provincial, and local regulatory approvals needed to construct the facility located on the Strait of Canso in Nova Scotia.

Bear Head LNG Corp. has applied to Canada's National Energy Board (NEB) for authority to import natural gas from the US and export up to 8 mtpa of LNG in 2019 from Canada, with expanded authority to 12 mtpa in 2024. Bear Head LNG expects these authorizations in the near future.

Bear Head LNG Corp. has also applied to the DOE for authority to import for subsequent export up to 250 bcf per year of Canadian natural gas by pipeline that is “in transit” through the US, back into Canada for delivery to Bear Head LNG's proposed liquefied natural gas export facility. This authorization would allow a portion of the Bear Head LNG’s natural gas requirements to come from sources in Western and Central Canada, enhancing commercial supply options.

Bear Head LNG President Maurice Brand pointed to the steady progress toward final regulatory clearance. “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," he said. "Over the next few months, we anticipate receiving our DOE approval to move Canadian gas through the US, the DOE non‐FTA export approval, and the NEB import and export approvals from Canada."

Bear Head LNG is wholly owned by Liquefied Natural Gas Ltd. (LNGL), an Australian listed company (Code: LNG and OTC ADR: LNGLY) focused on development of mid‐scale LNG plants. LNGL’s portfolio includes 100% ownership in Magnolia LNG LLC, Bear Head LNG Corp., Gladstone LNG Pty Ltd., and LNG Technology Pty Ltd., which owns and develops the OSMR LNG liquefaction process.


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