Pieridae Energy Supports TC Energy

In Canada, Pieridae is proposing the construction of a major LNG terminal. The latter is not feasible without an extension of TC Energy's pipeline network.

Pieridae Energy, which is proposing an LNG terminal on the east coast of Canada, is supporting TC Energy. It calls on the Government of Canada to ensure that TC Energy obtains the necessary permits to expand the pipelines.

Pieridae Energy relies on TC Energy pipelines

Indeed, Pieridae has an interest in seeing TC Energy obtain these permits. Alfred Sorensen, CEO of Pieridae, explains that his company’s project, Goldboro LNG, is not possible without. Expansion of TC Energy’s pipeline network is an absolute must.

Alfred Sorensen states:

“There is no alternative. Without TC Energy, there is no Goldboro LNG project.”

In a context of energy crisis, European states are looking for alternatives to Russian gas. As the winter months get tougher, many nations are looking to North America for their LNG supplies. While American LNG is flowing into Europe, Canada also has a key role to play.

Canada has many advantages. The country can count on significant LNG reserves and its geographical proximity. However, limited pipeline capacity is holding back plans to bring gas to Europe.

An essential project in the context of the energy crisis

Calgary-based Pieridae is proposing to build an LNG export terminal in Nova Scotia. The latter could then send 2.4 million tons of LNG per year from 2027, if construction starts next year. The project is estimated to cost about $3 billion.

However, this project cannot exist without an extension of TC Energy’s pipeline network. Currently, the latter is not able to meet the demand created by the Pieridae project. The company, which did not wish to comment on the discussions with Pieridae, explains that it has “practically no spare capacity”.

Thus, Pieridae appeals to the federal government. He asked her to help ensure that the process for TC Energy’s pipeline proposals is clear. The company fears numerous challenges, both legal and from outside groups. These would then severely hamper the Pieridae project.

Pieridae Energy’s general manager comments:

“We have presented our project and now we just have to wait and see. We have also talked to TC Energy, and they are the ones who have to decide to go first.”

Natural Resources Minister Jonathan Wilkinson declined to comment directly on the Pieridae project. Nevertheless, a spokesman, says:

“Canada was one of the first countries to commit to increasing oil and gas exports after the illegal invasion of Ukraine, and we continue to work with our international partners to strengthen global energy security.”

Canadian regulatory process decried by industry

In Canada, Pieridae is not the only company concerned about the country’s regulatory process. Many oil and gas industries find the latter too time consuming and expensive. On the contrary, environmental groups support such a process. They feel that past projects have not been sufficiently reviewed.

A government source explains:

“The government is happy and willing to work with the private sector to reduce friction in the regulatory process, but we are not prepared to bypass the regulatory process, or change it. We have confidence in it. And we’re not going to make uneconomic projects uneconomic.”

In fact, the government has redesigned its major project process. However, faced with significant delays, TC Energy has already abandoned two pipeline projects: Energy East and Keystone XL. The first one is facing strong public opposition, but also regulatory obstacles. Regarding the second, Joe Biden kept his election promise and revoked the permit.

Another example is TC Energy’s Coastal GasLink. This will feed the Shell-led LNG project. It has already undergone regulatory review and is 75% complete. Nevertheless, it is at the heart of First Nations protests.

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