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Bechtel Scores Nova Scotia LNG Project After KBR Bows Out

Pieridae Energy signed engineering firm Bechtel to a services agreement for its $10-billion Goldboro LNG facility in Nova Scotia, Canada. Bechtel replaces original EPCC contractor KBR, which exited the project in to focus on its government contracts and technology businesses.

Bechtel will initiate a detailed review of the scope and design of the facility, developing an engineering, procurement, construction, and commissioning (EPCC) execution plan by 31 March 2021. The company will also deliver a final lump sum, turnkey contract price proposal by 31 May 2021 and engage the Nova Scotia Mi’kmaq First Nations to participate in construction of a large-scale work camp at the LNG site.

The two-train 10-mtpa project will be built 250 km northeast of Halifax near Goldboro, at the mouth of the Maritimes Northeast Pipeline which will supply the facility with natural gas. Production from the first train was sold to German utility company Uniper—a 20-year binding contract with a 10-year extension—representing 10% of total German gas demand, according to Pieridae.

Alberta will provide most of the gas needed for Train 1 with 1.6 Bcf/D needed to supply both trains.

Construction was planned for 2020 with first gas expected to ship overseas in line with a planned LNG shortfall in 2023–2024, but Pieridae said in April it would not make a final investment decision on the project until economic conditions improve.

The project would be the largest megaproject in Nova Scotia’s history, helping to revitalize a dormant drilling area in the Alberta Foothills.

“Goldboro LNG is a shovel-worthy and shovel-ready project that will create thousands of jobs and help put Canadians back to work in a COVID-impacted environment; provide real, enduring and tangible economic benefits for First Nations; help lower global emissions by supplying LNG overseas to replace coal; and increase Europe’s choices in sourcing natural gas,” said Pieridae CEO Alfred Sorense in a press statement.

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