LONDON, Aug 16 (Reuters) - Axpo, a Swiss utility and energytrader, said on Thursday it was in talks with a Canadian companyplanning to build a liquefied natural gas (LNG) terminal on thecountry's East Coast for a 10-year supply deal.
If the talks lead to a Sales and Purchase Agreement (SPA),they would help boost the chances of the C$10 billion ($7.6billion) Goldboro project being built by Pieridae Energyto become the first LNG export terminal on Canada's East Coast.
Canada is rich in oil and gas but has yet to export LNG toAsia from its West Coast or across the Atlantic from its EastCoast in commercial quantities despite major companies planning20 export terminals.
"Under the term sheet with Pieridae Energy, Axpo willpurchase LNG from Train 2 of the Goldboro liquefaction facilityand sell it across Europe," Axpo said in a statement.
"The contract is scheduled to begin from the start ofcommercial deliveries, currently estimated to be in the thirdquarter of 2023, and last for a 10-year period."
Pieridae's Chief Executive Alfred Sorensen told theFinancial Post on Tuesday the company was close to taking aFinal Investment Decision (FID) on the project next month afterspending the past year seeking permits and talking tocontractors and buyers.
Five other projects on Canada's East Coast have also beenproposed although initiatives have stuttered in recent years asglobal LNG prices fell due to an anticipated glut.
Now, although prices are higher, Canada's LNG would be incompetition with exports from new facilities in the UnitedStates, which are ramping up to volumes seen as a gamechangerfor the global market in years to come.
Another 14 projects have been proposed for Canada's WestCoast, where LNG would be exported to Asian markets includingChina, whose insatiable appetite for the super-chilled fuel hasboosted prices and buoyed the industry in the past year.
One of the largest of those projects is LNG Canada, a C$40billion ($30 billion) export terminal in Kitimat, BritishColumbia, which is expected to make its FID before the end ofthe year.
LNG Canada is a joint venture between Anglo-Dutch giantRoyal Dutch Shell Plc, Malaysia's Petronas,PetroChina Co Ltd, Mitsubishi Corp andKorea Gas Corp.($1 = 1.3126 Canadian dollars)(Reporting by Sabina Zawadzki; Editing by Elaine Hardcastle)