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The Canadian Press - ONLINE EDITION

Australian company buys proposed Bear Head LNG site in Nova Scotia for $11M

PORT HAWKESBURY, N.S. - Australia-based Liquefied Natural Gas Ltd. announced Monday it is purchasing a potential natural gas export site in Nova Scotia from a subsidiary of Anadarko Petroleum Corp. for $11 million.

The company says the deal to buy the Bear Head LNG project outside Port Hawkesbury, N.S., is scheduled to close at the end of next month.

The 100-hectare site includes land zoned for industrial purposes and there are two foundations in place for LNG tanks.

Liquefied Natural Gas Ltd. says the project could lead to exports of LNG to European markets.

Anadarko Petroleum Corp. mothballed its plans for an LNG plant at the site seven years ago due in part to difficulties in accessing a supply of the fuel. Liquefied Natural Gas Ltd. says it is in talks with several potential suppliers.

The warden of the Richmond County municipality said word of revived interest in the project is good news.

"Any time there is potential development in the Strait Area it's exciting news for all of us," said Steve Sampson.

There are two other LNG export sites proposed for Nova Scotia's eastern coast.

Pieridae Energy Canada was given conditional approval earlier this year to proceed with its proposed LNG plant in Goldboro.

Earlier this month, Indian company H-Energy signed memorandums of understanding with customers for half of its planned output from a proposed LNG plant and export terminal in Guysborough County. Environmental approvals for that development have not yet been granted.

(The Canadian Press, CJFX)

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