Australian-listed Liquefied Natural Gas Ltd (LNG Ltd) is planning to double the production capacity of its LNG export project on the coast of Nova Scotia, Canada.
Citing market response and gas supply projections, the company announced on Monday that its Bear Head LNG project would be expanded to an initial production capacity of 8 million tons per annum (mtpa), from the previously announced 4 mtpa.
Bear Head LNG Corporation, a wholly owned subsidiary of LNG Ltd, has also filed for modifications to the existing construction and environmental permits for the site, converting it to an export project.
"This is a major step in adapting Bear Head LNG's 12 existing construction and environmental permits to an export project. These key regulatory filings help maintain our accelerated pace in executing the project development plan," commented John Godbold, chief operating officer and project director for Bear Head LNG.
Ian Salmon, chief financial officer and chief commercial officer for the project, said that several options are being investigated for natural gas supply. He noted that there are 15 proven and undeveloped significant discoveries offshore Nova Scotia, with recoverable reserves sufficient to underpin the venture. There is also the possibility of accessing onshore natural gas from prolific North American production basins to provide feedstock, he added.
LNG Ltd only acquired Bear Head in late August, paying Anadarko Petroleum Corporation $11 million to take over the project.
A final investment decision is expected in late 2015 or in 2016, with the export facility potentially starting commercial operations around late 2018 to 2019.
The Australian company is also developing another 8 mtpa LNG export project, Magnolia, at Lake Charles, Louisiana.
