US DOE authorises Bear Head to export liquefied natural gas to non-FTA countries

Bear Head LNG has secured approval from the US Department of Energy (DOE) to export liquefied natural gas (LNG) to countries that do not have free trade agreements (FTA) with it.

The authorisation will allow Bear Head to export LNG to countries which have not signed free trade agreements with the US.

Bear Head LNG president Maurice Brand said: "Today’s DOE decision is an extremely positive milestone for Bear Head LNG as it removes a significant risk for the project.

"Bear Head LNG is appreciative of the cooperation between the US and Canada in working out key energy regulatory issues."

The proposed Canadian LNG export facility Bear Head is located on Nova Scotia’s Strait of Canso near Port Hawkesbury and has received the non-FTA authority from DOE as well as all the initial regulatory approvals to commence project construction.

The facility is expected to have a capacity of 8mtpa.

DOE also determined that the company need not take its authorisation for Canadian natural gas to pass through US pipelines on its way to the export facility in Nova Scotia.

So far, Bear Head has secured US DOE’s authorisation to export LNG to both FTA and non-FTA countries, and authorisation from Canadian NEB to export up to 12 million tonnes per annum (mtpa) of LNG.

The company also received all ten initial Canadian federal, provincial, and local regulatory approvals to commence project construction.

"Bear Head is negotiating for gas supplies from Western and Central Canada, from offshore Nova Scotia, and from the abundant supplies available in the US With DOE’s non-FTA export approval, we are able to continue forward on US gas production as the third leg of our gas supply portfolio," Brand added.

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Image: US DOE’s authorisation will allow Bear Head to export LNG to countries with which trade is not prohibited by US law or policy. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net.