Woodfibre LNG project : Pacific Energy, Enbridge partner on LNG export facility in Canada
Pacific Energy and Enbridge have agreed to jointly invest in the construction and operation of the Woodfibre LNG project in Canada, which is touted to be one of the world’s lowest-emission liquefied natural gas (LNG) export plants.
The Woodfibre LNG facility, which is being built near Squamish, British Columbia, will produce 2.1 million-tonne-per-year of LNG for export purposes.
The CAD5.1 billion ($3.8 billion) Woodfibre LNG project with 250,000M3 of floating storage capacity will use electric motor drives powered by renewable hydroelectric power.
As part of the terms of the agreement signed by the parties, Pacific Energy will own a 70% stake in the Woodfibre LNG export project while Enbridge will hold the remaining 30% stake.
Ratnesh Bedi — Pacific Energy President said: “This partnership is a milestone for the Woodfibre LNG project.
“And it further accelerates Canada’s ability to be a meaningful player in the global energy transition with the production of the world’s lowest carbon LNG.”
According to Enbridge, capital for the Woodfibre LNG facility includes a contribution to support the construction of expanding FortisBC Energy’s Eagle Mountain to Woodfibre pipeline. Eagle Mountain to Woodfibre will link the Woodfibre LNG plant through FortisBC’s system to Enbridge’s T-South natural gas transmission system.
Al Monaco — Enbridge President and CEO said: “This facility will provide global LNG markets with a safe, secure and sustainable source of B.C. natural gas through long-term transportation agreement on our T-South pipeline system.
“This investment is a natural extension of our export pipeline strategy, with strong commercial underpinnings.
“Expanding global access to natural gas through LNG will play a critical role in North America’s energy future and will help to reduce the world’s greenhouse gas emissions through the displacement of coal-fired power generation, creating strong alignment with our ESG goals.”
The Woodfibre LNG project is backed by a couple of long-term offtake deals with BP Gas Marketing for 15 years for 70% of the capacity, with further commitments in development for up to 90%.
In April 2022, a Notice to Proceed was issued to McDermott International for the construction the Woodfibre LNG facility, which is likely to be operational in 2027.