Swiss trader Axpo signs LNG deal with Pieridae Energy

Swiss trading company Axpo Group agreed a term-sheet with the Canadian LNG project developer Pieridae Energy to negotiate a sales and purchase deal for volumes from Goldboro LNG project in Nova Scotia. 

According to Axpo’s agreement, the trader is looking to agree the delivery of 2.5 million tonnes of the chilled fuel from the second train of Pieridae’s proposed Goldboro plant to the European markets.

The company said the term-sheet is a milestone in its strategy to build a longer term and a more diversified global LNG portfolio.

The contract is scheduled to begin from the start of commercial deliveries, currently estimated to be in the third quarter of 2023, and last for a 10-year period.

Pieridae noted in its statement that Axpo is the European buyer offtaker mentioned in its statement in May this year.

Domenico De Luca, head of Axpo Trading and member of the management board of Axpo Holding, said the deal further diversifies the company’s supplies and boosts its LNG ambitions.

“It supplements the current shorter-term focussed global LNG portfolio which last year physically supplied 1.2 mtpa,” he said.

The Goldboro LNG terminal project consists of an LNG processing facility, storage tanks and marine works located in Nova Scotia.

The facility is anticipated to produce approximately 10 million metric tons of LNG per year and have on-site storage capacity of 690,000 cubic meters of LNG.