Perth-based Liquefied Natural Gas Ltd (LNGL) has upped the ante in its quest to bring its Bear Head LNG project in Nova Scotia, Canada, to reality.

LNGL announced that its wholly owned Canadian subsidiary, Bear Head Energy Corp, has filed for modifications to the existing construction and environmental permits granted by the Nova Scotia Utility and Review Board and Nova Scotia Environment.

“This is a major step in adapting Bear Head LNG’s 12 existing construction and environmental permits to an export project. These key regulatory filings help maintain our accelerated pace in executing the project development plan,” said John Godbold, Bear Head LNG CEO.

Bear Head also is doubling expansion of the initial facility production capacity to 8 mtpa. “Bear Head LNG is targeting a higher rate of production capacity based on market response and gas supply projections. This change also reflects our conversations with regulatory agencies and political leaders. We have been on a fast track from day one, with significant permitting approvals already in place and detailed level engineering and initial site construction completed,” a company statement said.

Bear Head LNG is being developed on a “world-class site” that was partially developed and then maintained in hot-idle status. “With the existing permitting and the construction that is already underway, we have a material head start of six to 12 months against competing LNG projects,” Godbold said.

Located on the deep, ice- and dredge-free waters of the Strait of Canso in Point Tupper Richmond County, Nova Scotia, Bear Head LNG is being developed on a 225-acre site comprising industrial-zoned land of 180 acres and deep-water acreage of 75 acres.

LNGL said the prior owners of Bear Head LNG had spent more than $100 million on design and complete engineering work and site construction in the early 2000s, benefits that Bear Head uses today.

Bear Head has already acquired 12 permits to build its LNG facility, including environmental assessment permits to construct a gas plant facility from the Department of Natural Resources and the Nova Scotia Utility and Review Board. It also has a development permit from the municipal government in Richmond County.

The company said modifications of these existing permits were part of Friday’s filing to apply for a LNG liquefaction facility.

LNGL said the Bear Head site was about half the shipping distance to Europe than U.S. Gulf of Mexico ports and also closer to burgeoning natural gas markets in India, Argentina and other major LNG markets than some of its North American competitors, including those in British Columbia.

Maurice Brand, Bear Head LNG President and LNGL Managing Director and CEO, said investor confidence in the project was reflected in an oversubscribed share placement that raised $38.6 million earlier this year from U.S. and Australian institutional investors.

Ian Salmon, Bear Head LNG CFO and chief commercial officer, said the company is investigating several options for natural gas supply.

“There are 15 proven and undeveloped significant discovery licences of natural gas offshore Nova Scotia, with recoverable reserves sufficient to underpin the project. In addition, we believe there is potential to access onshore natural gas from prolific North American production basins to provide feedstock to Bear Head LNG,” Salmon said.

LNGL said a final investment decision was earmarked for late 2015 to 2016 and it was envisaged that the export facility could be in commercial operation by late 2018 to 2019.

Dale Granger can be reached at dgranger@hartenergy.com.

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