Liquefied Natural Gas Limited (ASX:LNG) has struck a deal to buy the Bear Head LNG Project in Nova Scotia in Canada for $US11 million.
The liquefied natural gas developer will buy the 255 acre site from a subsidiary of Ana-darko Petroleum Corporation. The transaction includes all project rights, approvals, LNG tank foundations and significant civil works.
Liquefied Natural Gas proposes to develop the site for an initial 4 million tonne per annum LNG export project with the potential for future expansion.
Due to the work already completed the company expects Bear Head will have a significantly lower development cost and likely faster approvals than its flagship Magnolia project.
The company advises Magnolia remains on schedule and budget of $US2.2 billion and will not be affected by the Bear Head acquisition.
Liquefied Natural Gas reported a net loss of $7.7 million in the first half of the 2014 financial year.
