Woodfibre LNG sells offtake to BP
Officials say the sale shows promise for the low-carbon LNG market.
A rendering shows the Woodfibre LNG project in Squamish, B.C. – Squamish Nation
Key Takeaways:
- bp Gas Marketing has a total firm LNG offtake for the project of 1.95 million tonnes per annum.
- Work on the project is scheduled to start this month and operations are expected to start in 2027.
- Officials say it will be the world’s first LNG export facility targeting net-zero carbon emissions.
The Whole Story:
All of Woodfibre LNG’s offtake has been spoken for.
The B.C. LNG project, set to begin construction this month, announced it has now committed all of its offtake for sale to bp Gas Marketing Limited (BPGM), a wholly-owned indirect subsidiary of bp p.l.c., with a total firm LNG offtake of 1.95 million tonnes per annum (MTPA) and the remainder on a flexible basis.
Woodfibre LNG Limited Partnership has signed a third LNG Sales and Purchase Agreement (SPA) with BPGM for the delivery of LNG from the Woodfibre LNG export facility. Under the terms of this SPA, BPGM will receive an additional 0.45 MTPA of LNG over 15 years on a free on board (FOB) basis.
“Canada, and particularly British Columbia, is uniquely positioned to take the lead on exporting lower-carbon LNG overseas as part of the global energy transition. Today’s announcement demonstrates there is demand for lower-carbon energy today and well into the future,” said Christine Kennedy, president of Woodfibre LNG. “We look forward to working with BPGM as the offtaker from the Woodfibre LNG project to deliver Canadian LNG from one of the lowest carbon intensive LNG export facilities in the world. The global demand for lower carbon energy makes Woodfibre LNG a supplier of choice in the energy transition,” said Ratnesh Bedi, Pacific Energy president.
Woodfibre LNG is scheduled to begin construction this month in Squamish and operations are expected to begin in 2027. Officials say it will be the world’s first LNG export facility targeting net-zero carbon emissions.
“As a leader in the energy transition and partner in the Woodfibre LNG Project, Enbridge is pleased with today’s announcement. Woodfibre LNG will play an important role in providing global LNG markets with a safe, secure and sustainable source of natural gas produced by one of the lowest emission LNG facilities in the world,” said Cynthia Hansen, Enbridge Executive Vice President and President of Gas Transmission and Midstream.
