Contact, Pieridae form LNG partnership
PPLP to supply proposed Goldboro LNG terminal.
CALGARY — Contact Exploration Inc. and Pieridae Energy Ltd. are forming a new natural gas-focused exploration and production entity to provide feedstock to a proposed LNG terminal in Guysborough, NS.
The Pieridae Production Limited Partnership (PPLP) will source, develop and produce natural gas to serve as significant portion of the feedstock for Pieridae’s Goldboro LNG Terminal.
The terminal will liquefy and export up to about 10 million tonnes of natural gas per year and have on-site storage capacity of 690,000 cubic metres of LNG.
The companies say the partnership will focus on securing and developing natural gas assets from onshore Atlantic Canada and the eastern US.
PPLP will hold about 50,000 acres of land for natural gas development within New Brunswick.
Initial ownership of PLPP will be 85% Contact, a Calgary-based oil and gas company, and 15% Pieridae, an energy infrastructure company that has opened an office in Halifax.
An additional $15.4 million of third-party equity funding is being sought and coordinated by Pieridae. Once invested, Contact’s ownership in the partnership will drop to 50%.