US DOE allows Bear Head LNG to export gas to Canada

US Department of Energy (DoE) has granted authorisation to Bear Head LNG to export gas to Canada as well as export of Canadian gas to free trade agreement countries.

The approval allows annual exports of up to 440 billion cubic feet (Bcf) of US natural gas from the project to Canada, and up to eight mtpa of liquefied natural gas (LNG) from Canada to the free trade agreement (FTA) nations.

Bear Head LNG had received federal approval in May 2015 to build an export terminal on the Strait of Canso in Nova Scotia.

Bear Head project director John Godbold said: "This is an important step in achieving certainty of gas supply for the Bear Head project.

"The US Department of Energy is implementing a regulatory framework that promotes trade and economic growth while balancing the provisions of the North American Free Trade Agreement, the U.S. Natural Gas Act and the U.S. National Environmental Policy Act."

Bear Head LNG has forwarded an application to US DoE for supplying LNG to non-FTA countries as well, for which it is awaiting approval.

LNG intends to arrive at a final investment decision for the project during 2016.

The proposed Canadian LNG export facility is claimed to be the first of its kind to be recognised by the US Federal Energy Regulatory Commission as an ‘Approved’ LNG export project in Canada.

Bear Head LNG president Maurice Brand said: "Over the next few months, we anticipate receiving our DOE approval to move Canadian gas through the US, the DoE non-FTA export approval and the NEB import and export approvals from Canada."

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Image: Schematic Site Layout for the proposed Bear Head LNG Export Project, Nova Scotia, Canada. Photo: courtesy of LNG Limited.