Bear Head to Export to Non‐FTA Countries

The U.S. Department of Energy (DOE) has issued final authorization for Bear Head LNG Corporation and Bear Head LNG (USA), LLC (together Bear Head LNG) to export liquefied natural gas (LNGLF) (LNG) derived from U.S. produced natural gas to countries that do not have free trade agreements (FTA) with the United States.    The DOE decision is a determination that these exports are not inconsistent with the U.S. public interest. This approval, in addition to DOE’s prior approval for exports to FTA countries, now allows Bear Head LNG to export LNG to countries with which trade is not prohibited by U.S. law or policy.

"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 U.S. and Canada in working out key energy regulatory issues," Bear Head LNG President Maurice Brand said.  

Bear Head LNG is the first and only proposed Canadian LNG export facility to receive both the non‐FTA authority from DOE and all the initial regulatory approvals to commence project construction.

 In addition, Bear Head’s approval in less than twelve months is the fastest non‐FTA LNG export approval issued by DOE to date since the initial non‐FTA LNG export permit was issued.
   
Bear Head LNG Corporation’s Project Director John Godbold said that prompt action is a tribute to the productive and open pre‐filing discussions with DOE, coordination between the U.S. and Canadian governments, and Bear Head’s submittal of an extremely robust application, which included many relevant studies. He noted that only two minor comments were received during the public comment period, further confirming the quality of the application and studies provided.
 
In tandem with the non‐FTA export permit, DOE determined that Bear Head LNG does not require DOE’s authorization for Canadian natural gasto passthrough U.S. pipelines(in transit) on its way to the export facility in Nova Scotia.  Godbold said this outcome enhances Bear Head's commercial gas supply options by allowing a portion of supply requirements to come from Western and Central Canada largely using existing pipeline facilities.

The Bear Head LNG project is located on Nova Scotia's Strait of Canso near Port Hawkesbury on a site permitted and partially developed a decade ago.  With this announcement, Bear Head LNG now holds the following approvals and authorizations granted by relevant U.S. and/or Canadian regulatory groups:

 U.S. DOE’s Authorization to export LNG to both FTA and non‐FTA countries;
 Canadian NEB’s Authorization to export up to 12 million tonnes per annum (mtpa) of LNG,
the natural gas equivalent of approximately 1.8 Bcf per day;
 Receipt of all ten initial Canadian federal, provincial, and local regulatory approvals needed
to commence project construction; and
 Placement on the list of approved North American LNG Export Terminals by the U.S.
 

Federal Energy Regulatory Commission. 

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