A small town of about 5,000 will spring up virtually overnight in Goldboro, Guysborough County next summer once the LNG project gets the green light to proceed.
Black Diamond Group Ltd. of Calgary, a provider of space rental and workforce accommodations, and its partner, the Wskijnu’k Mtmo’taqnuow Agency Ltd., a company wholly owned by the 13 Mi’kmaq communities in Nova Scotia, announced Thursday that they have received a letter of award from the proponent of Goldboro LNG.
The partnership, named Mi’kmaq of Nova Scotia Black Diamond LP, is owned 51 per cent by Wskijnu’k Mtmo’taqnuow Agency and 49 per cent by Black Diamond.
Trevor Haynes, chairman and CEO of Black Diamond, told me in a telephone interview from Calgary on Thursday that his company and the First Nations made contact about four years ago but solidified their partnership about two years ago.
Receiving the award from Pieridae Energy means that the partnership has been selected to exclusively negotiate the contract to provide lodging and associated amenities, estimated to be worth about $720 million, for the four-year construction phase of Goldboro LNG.
Mi’kmaq will be responsible for the lodge’s hospitality services and Black Diamond will be responsible for the supply and rental of the work camp. Catering, housekeeping, janitorial and guest services will be provided by Mi’kma’ki Domiculture, a joint venture between WMA and East Coast Catering Ltd., a wholly owned subsidiary of Compass Group Canada.
Haynes explained that Pieridae will pay for the 5,000-bed community in two parts. The first would be linked to construction of the lodging, which will include water, sewer, power and a strong internet connection. After it is built, the partnership will be paid on a monthly basis for the ongoing use of the facility and, once the construction phase is complete, the partnership will be responsible for removing the lodge.
“It will be built in phases as the workforce ramps up,” Haynes said, adding that he expects the first phase will be created to house 600 to 1,000 workers.
Black Diamond states that a significant number of the modular structures will be relocated and repurposed from its existing inventory in Canada, thus maximizing the sustainability aspects of the project.
Some of the preparation for the start of construction is expected to take place in Atlantic Canada with the participation of Kent Homes, a division of J.D. Irving Ltd. of Saint John. It is also expected that Kent Homes will manufacture new structures to complement those supplied from Black Diamond’s inventory.
Haynes said Black Diamond’s wholly owned subsidiary, LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel and logistics, will be available to the construction workers at the camp to allow for greater ease of movement in and out of the area.
There is also an opportunity for residents in the Goldboro area to rent a room in their home or their cottage to workers, he said, and LodgeLink would assist with that.
The contract to build the construction lodge is expected to begin on or before June 30, 2021, which is the anticipated date for a final investment decision by Pieridae Energy.
The accommodations will be similar to a motel, single-occupancy bedrooms with private bath, dining and recreation facilities including a gymnasium, outdoor and indoor sports courts and fields, and golf simulators.
Pieridae’s plan calls for natural gas to be transported to Goldboro using the existing Maritimes and Northeast Pipeline for eventual export by ship to target markets in Europe, South America and Asia. The facility is expected to produce about 10 million tonnes of LNG per year and have onsite storage capacity of 690,000 cubic metres of LNG.
Earlier this week, Pieridae announced that international engineering firm Bectel Corp. will replace Kellogg Brown & Root Ltd. as the company that will provide turnkey engineering, procurement, construction and commissioning for the Nova Scotia project.
Pieridae said KBR was withdrawing from so-called EPCC contracts and Black Diamond boss Haynes said Thursday he’s not fazed by the decision. Black Diamond has worked with Bectel before, he said, and the fact that it has built most of the LNG export facilities in the world makes him feel more comfortable about the viability of the Goldboro project.
Pieridae says Bechtel has agreed to review the scope and design of the proposed Goldboro facility, develop a plan by March 31 and provide a lump sum turnkey contract price proposal by May 31.
"This is a very positive step forward for our Goldboro LNG project," said Pieridae CEO Alfred Sorensen in a recent news release.
"Bechtel has significant experience building and delivering global LNG projects, helping their customers deliver about 30 per cent of the world's LNG capacity over the past two decades. They have a proven track record of delivering projects throughout the world on time and on budget.”
In May, Pieridae announced it has negotiated extensions of the key deadlines under its 20-year agreement with German energy company Uniper Global Commodities. Commercial deliveries of gas to Uniper are now expected to start between Aug. 31, 2025 and Feb. 28, 2026.
“Over the last several weeks we have seen projects in Australia, Africa and the Gulf Coast either cancelled or delayed indefinitely due to the challenging energy market. We believe this is an opportunity for Canada to enter into this industry at a time when others are exiting. Our Goldboro LNG Project is fundamentally sound and with fewer competing projects, now is the time to proceed,” Sorensen said in a company news release in May.
