Energy company to develop Eastern Canadian LNG export facility

GOLDBORO, NS, Oct. 24, 2012 /CNW/ - Pieridae Energy Canada (Pieridae), a Canadian energy infrastructure development company, announced today, Oct. 24, the development of a liquefied natural gas (LNG) export facility in Goldboro, Nova Scotia, Canada.

Goldboro LNG (www.GoldboroLNG.com) will include a natural gas liquefaction plant and facilities for the storage and export of LNG, including a marine jetty for loading. The facility is anticipated to produce approximately five million metric tons of LNG per year and have on-site storage capacity of 420,000 cubic metres of LNG.

"We have the experience, expertise, financial resources, and access to supply and markets required for developing Eastern Canada's first LNG export facility," said Alfred Sorensen, President, Pieridae Energy Canada.

"Goldboro LNG will connect the expanding supply of natural gas in both Canada and the United States with the increasing global demand," said Sorensen. "With our location and proximity to existing gas pipeline infrastructure, Goldboro LNG is well positioned as the gateway to the global markets for North American LNG."

The facility is located adjacent to the Maritimes & Northeast Pipeline, a 1,400-kilometre transmission pipeline system built to transport natural gas between developments in Nova Scotia, Atlantic Canada and the northeastern United States.

The location of Goldboro LNG also provides substantial advantages for transporting LNG to key markets.

"Goldboro provides an excellent location for exports and will be the east coast of Canada and the United States' closest mainland LNG export terminal to Europe and India," said Sorensen.

The project will create significant direct and indirect economic benefits for the local community, province and region. It is anticipated that at its peak Goldboro LNG will create up to 1,500 jobs during construction and 100 full-time, permanent jobs during operations.

Pieridae is in advanced negotiations with international energy utilities for the natural gas processed at Goldboro LNG and expects to conclude negotiations in 2013.

Pieridae also announced that it is negotiating with Contact Exploration Inc. (Contact), a publicly-traded Canadian oil and gas company, the final details of a participation and earning agreement (Proposed Agreement) respecting Contact's New Brunswick natural gas assets. The Proposed Agreement further contemplates that Contact will exclusively manage the operations and investment made by Pieridae in Goldboro LNG with respect to the exploration and development of all potential Canadian on-shore natural gas.

"Goldboro LNG is an exciting development for Canada and provides a great opportunity for Eastern Canadian energy," said Steve Harding, President and CEO, Contact. "This project will promote resource development in Atlantic Canada, which might otherwise be compromised due to the prolific natural gas development in the northeastern United States."

Contact has a long-term history of operating in Eastern Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play.

"A Goldboro LNG export terminal will greatly contribute to our world-class oil and gas sector and position Nova Scotia as a strategic energy exporter," said Darrell Dexter, Premier of Nova Scotia. "This investment in our province will mean more good jobs for Nova Scotians and a boost to the economy throughout Atlantic Canada."

Goldboro, NS is also the landfall for the Sable and Deep Panuke offshore natural gas sub-sea pipelines and the Maritimes & Northeast Pipeline.

"The community of Goldboro and the Municipality of the District of Guysborough have embraced and contributed to developing our region as an energy hub. We are excited to work with Goldboro LNG to continue the momentum, grow our economy and build upon the natural advantages of our region," said Lloyd Hines, Warden of the Municipality of the District of Guysborough.

Barbara Pike, Executive Director of The Maritimes Energy Association, said, "The Goldboro LNG export facility will be an important addition to our region's energy infrastructure. The project has the potential to create opportunities for further development of Eastern Canada's natural gas resources and energy sector, which is evident in their negotiations with Contact."

Preliminary environmental, engineering and stakeholder engagement work is underway and pending regulatory approvals, construction is expected to begin in 2014 and Goldboro LNG will be operational in late 2018.

About Pieridae Energy Canada
Pieridae Energy Canada is a Canadian energy infrastructure development company focused on liquefied natural gas (LNG) opportunities. The company's management team has extensive LNG experience and deep connections to the LNG industry world-wide. Pieridae operates as the project lead in the initial phases of development of a project.

SOURCE: Pieridae Energy Canada

Sean Lewis, Pieridae Energy Canada at 902.425.1860 x. 225 (O), 902.223.2782 (M) or [email protected]