Houston-based Buckeye Partners said it has entered into a definitive agreement to buy Bear Head Energy, the developer of the Bear Head LNG project in Nova Scotia, Canada.
Buckeye has a network of liquid petroleum terminals and pipelines in the US while IFM Global Infrastructure Fund, controlled by Australia-based IFM Investors, owns the firm.
In a statement released on Thursday, the firm did not reveal any financial details regarding the purchase of Bear Head Energy.
Buckeye said the Bear Head project, previously developed as an LNG import and export facility, is fully permitted, and the project is “unique in Eastern Canada with all of the project approvals and permits in place necessary for construction”.
Located on the northeast bank of the Strait of Canso, the project enjoys access to “one of the northern-most, year-round ice-free ports with advantaged proximity to critical demand markets in Atlantic Canada, the US East Coast and Europe,” it said.
“Nova Scotia’s unique geographical characteristics give the region the potential to become one of the most productive renewable and green energy development areas in the world,” Buckeye CEO Todd J. Russo said in the statement.
Large-scale export hub
Following the acquisition, Buckeye plans to develop a large-scale energy production, distribution and export hub that would offer the company’s customers lower-carbon energy solutions, including LNG or other green fuels, according to Russo.
“We are excited to support the Bear Head management team, who has a rich history with the project and strong association with Nova Scotia and key stakeholders in the region,” he said.
Moreover, Bear Head president and CEO John Godbold welcomed Buckeye as its shareholder in the development of Bear Head.
“With the full support of Buckeye, we are able to leverage their best-in-class project management, construction and financial capabilities, which are integral to our ability to develop the project with a clear line of sight from development all the way through operations,” Godbold said.
Buckeye did not mention Australia’s LNG Limited, the previous developer of the 8 mtpa Bear Head LNG project but also the Magnolia LNG development in the statement.
To remind, LNG Limited hired PricewaterhouseCoopers Australia in April 2020 to review its assets as the firm had no more cash to continue operations.
According to a statement by PwC, creditors resolved to place LNG Limited and its units into liquidation in February 2021.