The Goldboro LNG Facility has been proposed to be developed by Pieridae Energy in the Goldboro Industrial Park in Guysborough County in Nova Scotia

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Pieridae Energy is looking to engage another EPCC contractor for the Goldboro LNG Facility. Credit: aymane jdidi from Pixabay)

Pieridae Energy has accused US-based engineering company Kellogg Brown & Root (KBR) of changing its position regarding a contract pertaining to the proposed Goldboro LNG Facility in Nova Scotia, Canada.

The Canadian energy company has been issued a notice by KBR in this regard. As per the notice, the US firm said that it will no longer look to negotiate and conclude a lump-sum turnkey engineering, procurement, construction and commissioning (EPCC) contract for the planned export and storage liquefied natural gas (LNG) project.

Pieridae Energy further claimed that KBR did indicate to it that it is still interested in delivering the EPCC services for the construction of the Goldboro LNG Facility. However, it said that the US firm decided that it will no longer offer a fixed-price contract.

The Canadian energy company termed KBR’s decision to be an apparent breach of its obligation under the terms of a signed services agreement signed between the parties in March 2019.

Pieridae Energy CEO Alfred Sorensen said: “With this notice from KBR, we are looking at all of our options, including discussing the matter with legal counsel to determine the most appropriate next steps.

“There are other reputable and experienced firms who have the expertise to provide these services, with some already indicating a willingness to replace KBR. We have had discussions with several of them to gauge their interest.”

Recently, Reuters, citing an email sent by KBR’s CEO to employees, reported that the engineering company is looking to quit from most of its LNG construction and other energy projects.

The mail reportedly revealed that KBR will no longer involve itself in lump sum, blue-collar construction services while adding that the coronavirus pandemic has fast-tracked the decision to quit fixed-price energy projects.

Details of the Goldboro LNG Facility

Proposed to be constructed in the Goldboro Industrial Park in Guysborough County, the Goldboro LNG Facility will comprise a natural gas liquefaction plant, a marine jetty for loading LNG with a capacity of 140,000–250,000m3, and also three storage tanks, each with a capacity of 230,000m3.

Expected to have capital expenditures in the range of about $5bn-10bn, the LNG export and storage project is targeted to enter into commercial operations in 2023.

Pieridae Energy said that the major elements of the Goldboro LNG Facility are in place, which includes receipt of key permits, and a 20-year contract to sell half of its gas to German energy company Uniper Global Commodities.