Pieridae Energy Limited purchases Shell's Foothills sour gas assets
Wednesday, 26 June 2019. Posted in Shootin' the Breeze
Shell press release – June 26, 2019
Shell confirms it has sold its Foothills sour gas assets to Pieridae Energy Limited, an experienced Canadian operator. The assets include three distinct sour gas plants (Waterton, Jumping Pound and Caroline) and the gas fields which feed them.
Combined, they produce approximately 29,000 barrels per day of natural gas, natural gas liquids and condensate. Shell will retain 60% ownership of the Shantz Sulphur Forming facility, and will maintain its sulphur, natural gas liquids and condensate sales and marketing business.
The buyer will retain all site-based Shell employees and some Calgary-based Shell employees who predominantly support the Foothills assets.
“I’m proud of the sour gas businesses we have built in Alberta and I want to thank all of the employees, contractors and local communities that have helped make these assets a cornerstone of our business in Canada for nearly 70 years,” said Michael Crothers, Shell Canada President and Country Chair.
“We are pleased they are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development.”
By acquiring 29,000 barrels of oil equivalent a day of production, we now have all the natural gas needed to supply the first train or facility for our $10 billion Goldboro LNG Project. And, Pieridae becomes the largest Foothills producer in Canada.
The Goldboro project is truly shovel ready.
In addition to owning its gas supply, Pieridae has signed a 20-year agreement with German utility giant Uniper for the full capacity of the first train, has US $4.5 billion in potential German Government loan guarantees, received all major permits for Goldboro, and continues to negotiate arrangements to use existing pipelines to transport the gas to the East Coast.
Pieridae expects to ramp up its drilling program in the Foothills over the next four years, creating and supporting thousands of Alberta jobs. The Goldboro Project would also create 3,500 jobs during construction of the LNG facility and 200 permanent jobs, making it Nova Scotia’s biggest-ever mega project.
The project also allows Canada to supply the world with clean-burning natural gas, helping to lower global GHGs.
“This acquisition creates a solid, ongoing foundation for Pieridae as we continue to build toward becoming the first Canadian company to market LNG off the East Coast to global consumers.”
Pieridae CEO Alfred Sorensen.
Full release from Pieridae Energy can be read here https://drive.google.com/a/shootinthebreeze.ca/file/d/0B98qo5TAGz3iZ3BrSEVUa3lGUDhxQnlpWjNEOElVQmJYYUVj/view?usp=sharing