Bear Head LNG Facility | Russell T. Rudy Energy LLC
I recently ran across an article in “World Oil” about Bear Head LNG (liquefied natural gas) buying additional land adjoining the site of its proposed facility in Nova Scotia (http://www.worldoil.com/news/2016/3/29/bear-head-lng-buys-additional-land-as-it-expands-proposed-facility ). The article went on to say that original plans were to liquefy 8 mtpa (million tons per annum) of natural gas for export to foreign countries. Since I was not familiar with the project, nor mtpa, I did some further investigating (http://www.bobby-strain-group.com/BSG_LNG.htm ). If my math is correct, the plant was designed to process approximately 1.2 billion cubic feet per day (bcfd), a significant amount of gas. With the expansion, the facility would increase throughput to 12 mtpa or about 1.8 bcfd.
The article did not state the proposed source of the gas to be processed, so I went to the Bear Head website (http://www.lnglimited.com.au/irm/content/bear-head-lng.aspx?RID=331&RedirectCount=1 ) and learned that the gas will come from both Canadian and U. S. sources. Looking at a map, the Marcellus shale of Pennsylvania is about half as far away from Nova Scotia as the Canadian state of Alberta. This leads me to believe that this project will be a significant outlet for Marcellus gas.
The website also states that the Nova Scotia location is about half as far from major European markets as competing LNG projects on the U. S. Gulf Coast.
I guess the real estate folks are right when they say that “location, location, location” are critically important. At any rate, this will be an interesting project to follow as Bear Head is a sister company to Magnolia LNG LLC which is developing the Magnolia LNG export terminal in Lake Charles, Louisiana.
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