DOE Permits Bear Head to Export to FTA Countries

On Friday, July 17th, the U.S. Department of Energy (DOE) granted Bear Head LNG Corporation and Bear Head LNG (USA), LLC (together Bear Head LNG) authorization to export up to 440 billion cubic feet (Bcf) per year of U.S. natural gas to Canada, and up to eight million tonnes per annum (mtpa) of liquefied natural gas (LNGLF) (LNG) from Canada to free trade agreement (FTA) countries.
 
"This is an important step in achieving certainty of gas supply for the Bear Head project," said John Godbold, Bear Head Project Director.  "The U.S. 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 anticipates a decision in the near future on its application for DOE authorization to export LNG to non‐FTA countries.  Godbold noted that only two interventions of minor substance were filed during the 60‐day comment period on Bear Head LNG's non‐FTA application.
    
Godbold also noted that Bear Head LNG is the first proposed Canadian LNG export facility to be recognized by the U.S. Federal Energy Regulatory Commission as an “Approved” Canadian LNG export project.  In May 2015, Bear Head LNG Corp. obtained the last of the ten initial federal, provincial and local regulatory approvals needed to construct the facility located on the Strait of Canso in Nova Scotia.
Bear Head LNG Corp. has applied to Canada's National Energy Board (NEB) for authority to import natural gas from the U.S. and export up to 8 mtpa of LNG in 2019 from Canada, with expanded authority to 12 mtpa in 2024.  Bear Head LNG expects these authorizations in the near future.

Bear Head LNG Corp. has also applied to the DOE for authority to import for subsequent export up to 250 Bcf per year of Canadian natural gas by pipeline that is “in transit” through the U.S., back into Canada for delivery to Bear Head LNG's proposed liquefied natural gas export facility. 

This authorization would allow a portion of the Bear Head LNG’s natural gas requirements to come from sources in Western and Central Canada, enhancing commercial supply options.

Bear Head LNG President Maurice Brand pointed to the steady progress toward final regulatory clearance.  “Great strides have been made in moving Bear Head LNG toward a final investment decision during 2016 as we continue to receive regulatory certainty for our facility.

Over the next few months, we anticipate receiving our DOE approval to move Canadian gas through the U.S., the DOE non‐FTA export approval and the NEB import and export approvals from Canada."