PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas (LNG) would spend $11-million to acquire the Bear Head LNG project, in Canada, from a subsidiary of Anadarko Petroleum Corporation.

The Bear Head project includes 225 acres comprising industrial-zoned land and deep-water acreage as well as foundations for two 180 000 m³ LNG tanks for a proposed 11.3-million-tonne-a-year LNG import terminal.

The project also included all rights for the previously proposed import terminal, including all assets, rights and obligations associated with the Bear Head project.

LNG MD Maurice Brand said on Monday that the Bear Head acquisition was consistent with the company’s strategic plan to selectively secure sites that met LNG’s criteria and to develop a strong North American presence.

He pointed out that the Bear Head assets would further de-risk LNG’s asset base.

“We are particularly keen to secure opportunities where we can either replicate Magnolia LNG [in the US] or substantially use all the company’s technical, engineering, technology and development expertise. Bear Head fits those criteria with the development plan based on the use of the company’s LNG process technology, which will deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule.”

LNG would transform the Bear Head project into a four-million-tonne-a-year LNG export facility with the potential for future expansion. The company had already developed a gas supply plan and a transportation plan, and had received interest from several parties for tolling agreements, adopting the same business model as the eight-million-tonne-a-year Magnolia project, in Louisiana.

“We have been undertaking due diligence on Bear Head since October 2013, so we are confident that we can hit the ground running and obtain all permits and approvals by mid-2015, and during 2016, make a final investment decision,” Brand said.