Canadian company Pieridae Energy has signed a purchase and sale agreement with Shell to acquire all of Shell's midstream and upstream assets in the southern Alberta Foothills for C$190m (US$145m). The transaction is expected to be completed in the third quarter of 2019, pending satisfaction of customary closing conditions and regulatory approvals.
The assets included in the transaction are currently producing around 28,600 boe/d, including 119 mcf/d (3.4 mcm/d or 1.2 bcm) of gas. Pieridae Energy will also acquire three deep cut, sour gas processing plants (Jumping Pound, Caroline and Waterton) with a combined capacity of 750 mcf/d (21 mcm/d or 7.7 bcm/year), along with around 1,700 km of pipelines.
The company expects these additional assets to improve gas supply to the first phase of its two-train, 10 Mt/year Goldboro gas liquefaction project in Nova Scotia, on the East coast of Canada. The Goldboro LNG project will have on-site storage capacity of 690,000 m3 of LNG. The natural gas feeding the facility will be delivered via the existing Maritimes & Northeast Pipeline, located directly adjacent to the project. The US$10bn LNG project could be commissioned in 2023 and its target markets are Europe and Asia.
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