Pieridae Energy buying Shell Alberta natural gas assets to feed LNG plant

A company planning to build an LNG export facility in Nova Scotia says it is buying southern Alberta natural gas assets from the Canadian arm of British-Dutch giant Royal Dutch Shell.

Pieridae Energy Ltd. says it has agreed to pay $190 million, with $175 million in cash and the rest in common shares.

CEO Alfred Sorensen says the purchase is in line with Pieridae's commitment to obtain natural gas supplies needed for the first train of its Goldboro LNG project.

Its proposed $10-billion LNG project is to produce about 10 million tonnes of super-cooled liquefied natural gas per year to ship mainly to European customers.

It says the Shell assets produce about 120 million cubic feet per day of natural gas, 5,600 barrels per day of natural gas liquids and 3,200 bpd of condensate and light oil.

The deal also includes three sour gas processing plants, a 14% interest in a sulphur plant and about 1,700 kilometres of pipelines.