Pieridae Energy has reconfirmed its expectations to sell its abandoned Goldboro LNG project prior to the end of June 2024. Proceeds will be used to partially repay its $22 million convertible bridge term loan which matures on 13 December 2024.
The Canadian independent said last November that it was walking away from the project, which it had been pursing since 2012. Once the sale is completed, it will mark the conclusion of Pieridae’s pivot away from east coast LNG and toward an Alberta-focused natural gas production and processing business.
“Our intent to divest our LNG business was previously communicated, and we advanced the planned sale of the Goldboro Nova Scotia LNG assets in the fourth quarter of 2023,” company President and Chief Executive Darcy Reding told investors this month. “While we are unable to disclose more specific information at this time, we remain confident in the probability of closing a successful sale transaction in the first half of 2024, as we communicated in our last quarterly investor call back in November 2023.”
Between 2012 and 2022, Pieridae spent about C$100 million developing its Goldboro export facility. The company sought a C$925 million loan from the Nova Scotia government in 2021 to jumpstart the project but was denied.
The sale includes Pieridae’s Goldboro subsidiary, associated assets, licenses and permits. Adam Gray, vice president and CFO at Pieridae, said that the company sees most of the value in the Goldboro package is in the “intangible permits and licenses associated with it.”
The LNG facility was planned for 267 acres in the Goldboro Industrial Park, the Municipality of the District of Guysborough County in Nova Scotia. The project site is located 7 km away from Meadow Lake, which would supply water for the terminal. The facility was envisaged as a 10 mtpa liquefaction plant with storage capacity for 380,000 m3 of LNG.
