Woodfibre LNG has committed its entire purchase for sale to bp Gas Marketing Limited (BPGM), an indirect wholly owned subsidiary of bp plc, by entering into a third party purchase and sale agreement (SPA) with BPGM for to the delivery of liquefied natural gas (LNG) from the Woodfibre LNG export facility near Squamish, British Columbia.
Under the terms of the SPA, BPGM will receive an additional 0.45 million metric tonnes per annum (mtpa) of LNG over 15 years free of charge. All gathering from Woodfibre’s LNG export facility is now committed for sale to BP, with firm gathering totaling 1.95 mtpa and the remainder on a flexible gathering basis, according to releases from press officials separated on Tuesday.
As well as securing LNG extraction rights from the project, BP said it will provide safe and reliable gas transport to Woodfibre’s LNG export facility for the duration of the 15-year contract.
Woodfibre LNG is scheduled to begin construction in September this year and operations will begin in 2027, according to the company’s statement. The Woodfibre LNG project is owned by Woodfibre LNG Limited Partnership, which is 70% owned by Pacific Energy Corp. (Canada) Ltd. and 30% of Enbridge Inc. The Woodfibre LNG facility is being built on the site of the former Woodfibre pulp mill. place, which is about 4.35 miles (seven kilometers) southwest of Squamish. Woodfibre LNG will source its natural gas from Pacific Canbriam Energy, a Canadian company with operations in northeastern British Columbia, Woodfibre said in a joint press release with Enbridge and Pacific Energy.
“As the world seeks secure, affordable and lower-carbon energy, global demand for LNG is expected to continue to grow and this additional Canadian supply source will further enhance BP’s supply positions in the Pacific region. We look forward to continue our close partnership with Woodfibre LNG,” bp vice president for global LNG trading and origination, Jonathan Shepard, said in bp’s press release.
“Canada, and British Columbia in particular, is uniquely positioned to take the lead in exporting low-carbon LNG overseas as part of the global energy transition. Today’s announcement demonstrates that there is a demand for low-carbon energy today and in the future,” said Woodfibre LNG President Christine Kennedy.
“We look forward to working with BPGM as the buyer of the Woodfibre LNG project to deliver Canadian LNG from one of the lowest carbon 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 Pacific Energy President Ratnesh Bedi.
BP said it continues to look for opportunities across the gas value chain, viewing LNG “as an essential part of the energy transition and its own pivot to becoming an integrated energy company”. The company aims to build an LNG portfolio of 30 million metric tons by 2030, and the additional source of supply from the Canadian west coast expands its flexible, high-quality LNG portfolio and improves further the company’s ability to meet growing global demand for natural gas, he said.
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