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Almost 300 undeveloped industrial acres on the former Goldboro LNG facility are on the market in Nova Scotia as proprietor Pieridae Vitality Ltd. focuses on oil and fuel manufacturing and processing in Alberta.
The Calgary-based agency set a mid-2024 goal for finishing the sale as a “strategic pivot” to Western Canada legacy wells and subject vegetation that it purchased from Shell Canada Ltd. in 2019.
CEO Darcy Reding, who changed retired founder and liquefied pure fuel champion Alfred Sorenson, stated Pieridae would use money from the sale to assist repay debt. Along with the 267 acres, varied lively licenses and permits, there could also be “strategic worth to a possible purchaser,” Reding stated through the latest quarterly convention name.
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“Though nonetheless early days, we’re assured within the likelihood of closing a profitable sale transaction within the first half of 2024,” he informed analysts.
Pieridae suspended Goldboro in 2021 after a nine-year effort. The final iteration concerned creating 1.3 Bcf/d of export capability in two phases. The lone east coast LNG survivor, Newfoundland LNG, is in environmental and industrial phases.
Different initiatives that had been deliberate for Canada’s japanese coast included proposals in Quebec, New Brunswick and Nova Scotia. Repsol SA canceled its deliberate LNG mission in New Brunswick earlier this yr.
Waterton Turnaround
In the meantime, Pieridae through the quarter accomplished a longer-than-expected turnaround on the Waterton pure fuel plant within the Southern Alberta Foothills. After going offline in August, vital degradation and corrosion of the interior tubes was noticed within the waste warmth boiler, a crucial warmth exchanger within the facility’s sulphur restoration course of.
“Though the 2 situations didn’t pose a well being, security or environmental danger, it did create a fabric danger to the long-term operational reliability of the vessel,” Reding stated.
Pieridae opted to proactively substitute about 1,300 warmth exchanger tubes, which resulted within the longer downtime. First fuel restarted on the finish of October. Reding stated through the outage, a number of gathering system de-bottlenecking and reconfiguration initiatives have been accomplished that helped optimize stream.
Pieridae manufacturing throughout 3Q2023 averaged 30,250 boe/d, 86% weighted to pure fuel. Pure fuel manufacturing slipped to 156 MMcf/d from 181 MMcf/d a yr earlier.
“Of be aware, the prolonged outage of the Waterton fuel plant via the top of the third quarter, coupled with the impacts of assorted wildfires in our Northern Alberta and Northeast British Columbia (BC) areas, negatively impacted our quarterly manufacturing by almost 6,600 boe/d,” Reding famous.
“Our fourth quarter will replicate some restoration of those impacts, though, as beforehand talked about, the Waterton fuel plant remained shut in via most of October and our Ekwan producing property in Northeast BC sustained some forest fireplace injury. This space is proscribed to helicopter entry outdoors of the winter months and assessments of required well-site repairs previous to resuming full manufacturing are ongoing.”
CFO Adam Grey through the convention name stated “the most important theme of our third quarter outcomes was actually the impression of our Waterton turnaround. We’ve been planning this capital mission for a while and accounted for downtime through the quarter. Nevertheless, that full tube substitute within the waste warmth boiler was not anticipated and added significantly to the size of the mission.
“Moreover, whereas the turnaround impacted our volumes…it had a proportionately higher impression on our working revenue. Manufacturing in Waterton is probably the most liquid-rich of our working areas. And in a standard quarter, Waterton will symbolize about 25% of manufacturing, however over 40% of our working revenue and money stream.
“Our company pure fuel manufacturing this quarter was 86% pure fuel with liquids and condensate making up the remaining 14%,” Grey famous. “However at Waterton, liquids and condensate comprise 29% of complete manufacturing…Not having Waterton accessible to us for half 1 / 4 was impactful.
“The silver lining of those massive capital upkeep initiatives is that well-executed deliberate upkeep performed throughout favorable climate situations reduces the danger of unplanned outages, which might happen at very unfavorable occasions of the yr and trigger nice pressure on our operations.”
The corporate, which reviews in Canadian {dollars} (C$1.00/US73 cents), stated favorable commodity contracts partially sheltered realized fuel costs at $3.24/Mcf from $3.62 a yr earlier, however the Alberta 3Q2023 benchmark with out hedges was $2.59.
Internet losses totaled $16.2 million (minus 11 cents/share) in 3Q2023, in contrast with year-ago losses of $1.5 million (minus 1 cent) a yr in the past.
The put up Pieridae In search of Purchaser for Goldboro LNG Website in Pivot to Western Canada appeared first on Pure Gasoline Intelligence
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