Almost 300 undeveloped industrial acres on the former Goldboro LNG facility are on the market in Nova Scotia as proprietor Pieridae Vitality Ltd. focuses on oil and fuel manufacturing and processing in Alberta.
The Calgary-based agency set a mid-2024 goal for finishing the sale as a “strategic pivot” to Western Canada legacy wells and area vegetation that it purchased from Shell Canada Ltd. in 2019.
CEO Darcy Reding, who changed retired founder and liquefied pure fuel champion Alfred Sorenson, stated Pieridae would use money from the sale to assist repay debt. Along with the 267 acres, numerous lively licenses and permits, there could also be “strategic worth to a possible purchaser,” Reding stated throughout the latest quarterly convention name.
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“Though nonetheless early days, we’re assured within the chance of closing a profitable sale transaction within the first half of 2024,” he instructed analysts.
Pieridae suspended Goldboro in 2021 after a nine-year effort. The final iteration concerned creating 1.3 Bcf/d of export capability in two phases. The lone east coast LNG survivor, Newfoundland LNG, is in environmental and industrial levels.
Different tasks that had been deliberate for Canada’s jap coast included proposals in Quebec, New Brunswick and Nova Scotia. Repsol SA canceled its deliberate LNG venture in New Brunswick earlier this 12 months.
Waterton Turnaround
In the meantime, Pieridae throughout the quarter accomplished a longer-than-expected turnaround on the Waterton pure fuel plant within the Southern Alberta Foothills. After going offline in August, vital degradation and corrosion of the interior tubes was noticed within the waste warmth boiler, a vital warmth exchanger within the facility’s sulphur restoration course of.
“Though the 2 circumstances didn’t pose a well being, security or environmental danger, it did create a fabric danger to the long-term operational reliability of the vessel,” Reding stated.
Pieridae opted to proactively change about 1,300 warmth exchanger tubes, which resulted within the longer downtime. First fuel restarted on the finish of October. Reding stated throughout the outage, a number of gathering system de-bottlenecking and reconfiguration tasks had been accomplished that helped optimize stream.
Pieridae manufacturing throughout 3Q2023 averaged 30,250 boe/d, 86% weighted to pure fuel. Pure fuel manufacturing slipped to 156 MMcf/d from 181 MMcf/d a 12 months earlier.
“Of notice, the prolonged outage of the Waterton fuel plant by the top of the third quarter, coupled with the impacts of varied wildfires in our Northern Alberta and Northeast British Columbia (BC) areas, negatively impacted our quarterly manufacturing by almost 6,600 boe/d,” Reding famous.
“Our fourth quarter will mirror some restoration of those impacts, though, as beforehand talked about, the Waterton fuel plant remained shut in by most of October and our Ekwan producing property in Northeast BC sustained some forest fireplace harm. This space is restricted to helicopter entry exterior of the winter months and assessments of required well-site repairs previous to resuming full manufacturing are ongoing.”
CFO Adam Grey throughout the convention name stated “the key theme of our third quarter outcomes was actually the affect of our Waterton turnaround. We’ve been planning this capital venture for a while and accounted for downtime throughout the quarter. Nonetheless, that full tube substitute within the waste warmth boiler was not anticipated and added significantly to the size of the venture.
“Moreover, whereas the turnaround impacted our volumes…it had a proportionately larger affect on our working earnings. Manufacturing in Waterton is probably the most liquid-rich of our working areas. And in a standard quarter, Waterton will signify about 25% of manufacturing, however over 40% of our working earnings and money stream.
“Our company pure fuel manufacturing this quarter was 86% pure fuel with liquids and condensate making up the remaining 14%,” Grey famous. “However at Waterton, liquids and condensate comprise 29% of whole manufacturing…Not having Waterton out there to us for half 1 / 4 was impactful.
“The silver lining of those massive capital upkeep tasks is that well-executed deliberate upkeep performed throughout favorable climate circumstances reduces the danger of unplanned outages, which may happen at very unfavorable instances of the 12 months and trigger nice pressure on our operations.”
The corporate, which experiences in Canadian {dollars} (C$1.00/US73 cents), stated favorable commodity contracts partially sheltered realized fuel costs at $3.24/Mcf from $3.62 a 12 months earlier, however the Alberta 3Q2023 benchmark with out hedges was $2.59.
Web losses totaled $16.2 million (minus 11 cents/share) in 3Q2023, in contrast with year-ago losses of $1.5 million (minus 1 cent) a 12 months in the past.
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