Enbridge to take 30% stake in Woodfibre LNG
Enbridge Inc. and Pacific Energy Corp. Ltd. have agreed to jointly invest in construction and operation of the 2.1-million tonne/year Woodfibre LNG plant being built near Squamish, BC. The plant will use 250,000 cu m of floating storage and is underpinned by two 15-year offtake agreements with BP Gas Marketing Ltd., representing 70% of capacity, with commitments in development for another 20%.
Woodfibre LNG Ltd. earlier this year issued a notice to proceed to primary contractor McDermott International, beginning the work required to move the project toward starting major construction in 2023 (OGJ Online, Apr. 18, 2022). The companies expect the plant to be in service in 2027.
Woodfibre LNG will use electric motor drives powered by renewable hydroelectric power, which Enbridge says will make it one of the lowest-emission LNG plants in the world. The project has received all major federal, provincial, and First Nations approvals.
Natural gas for Woodfibre will be supplied from the Montney shale via an interconnection with the T-South portion of Enbridge’s 3.4-bcfd BC Pipeline system. Capital for the project includes a contribution in aid of construction for the expansion of FortisBC Energy Inc.'s 47-km Eagle Mountain to Woodfibre pipeline which will connect the plant to T-South near the Coquitlam watershed.
Under the partnership agreement, Enbridge will take a 30% ownership stake in the $5.1-billion project, with Pacific Energy retaining the remaining 70%.
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.