Woodfibre LNG facility : BP secures third long-term LNG offtake contract
BP has inked its third long-term liquefied natural gas (LNG) offtake contract with the Woodfibre LNG facility based in British Columbia, Canada. The deal secures 0.45 million tonnes of LNG per year (mtpa) for a 15-year term, now committing all of Woodfibre’s LNG production to BP. The agreement brings BP’s total firm offtake from the facility to 1.95 mtpa. This significant move bolsters BP’s flexible, high-quality LNG portfolio and underscores the company’s commitment to the growing global natural gas demand.
As part of its larger strategy to transition to an integrated energy company, BP continues to identify new opportunities across the gas value chain. The company views LNG as an essential component of the global energy transition and aims to build an LNG portfolio of 30 million tonnes by 2030. With this additional contract, the Canadian west coast supply source significantly expands BP’s reach in the natural gas market.
In addition to securing LNG offtake rights, BP will also provide safe and reliable transportation of gas to the Woodfibre LNG export facility throughout the 15-year contract term. Jonathan Shepard, VP of global LNG trading and origination at BP, emphasized the strategic importance of this deal, stating, “As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow. This additional Canadian supply source will further enhance BP’s supply positions in the Pacific region.”
BP secures third long-term LNG offtake contract with Woodfibre LNG facility. Photo courtesy of BP p.l.c.
Notably, the Woodfibre LNG facility aims to be the world’s first net-zero LNG facility by 2027, leveraging hydro-powered, electric-driven compression technology. This commitment aligns closely with BP’s own goals for the energy transition, making this partnership not just a commercial win but also a sustainable choice for both parties.
This key development follows recent news that all LNG output from the Woodfibre LNG export facility is now committed for sale to BP, further solidifying the company’s role in supporting the energy transition and energy security. With natural gas playing an increasingly important role in the global energy landscape, this collaboration sets the stage for both companies to meet the challenges and opportunities of a rapidly changing energy market.