HALIFAX—Pieridae Energy Canada says it has signed a 20-year agreement with a German utility company that would buy liquefied natural gas from a proposed project in Nova Scotia.
The deal would see E.ON Global Commodities SE purchase about five million tonnes of liquefied natural gas annually from a development that Pieridae has proposed for Goldboro, N.S.
Pieridae Energy says the cost of the liquefied natural gas would be based on market prices in the Western European market.
“Our agreement with E.ON provides the economic security needed to complete the development of the first process train of the Goldboro LNG terminal,”Alfred Sorensen, Pieridae’s president and CEO, said in a statement.
In March, Pieridae and Contact Exploration Inc. announced they were partnering to form the Pieridae Production Limited Partnership (PPLP), a natural gas exploration and production firm to provide feedstock for the proposed terminal.
He says the firm plans to submit an environmental assessment to Nova Scotia this year, with hopes of beginning construction in late 2015.
Sorensen says if the plant proceeds, it would have the ability to export up to 10 million tonnes of natural gas annually, and a storage capacity of 690,000 cubic metres of LNG.
The company is aiming to begin operations in 2020.