Enbridge invests in Woodfibre LNG project
Canadian midstream company Enbridge said July 29 it had entered a deal to facilitate the supply of liquefied natural gas to global markets.
The North American midstream player and Pacific Energy Corporation Limited (Pacific Energy) announced an agreement to jointly invest in the construction and operation of the Woodfibre LNG project in British Columbia.
Woodfibre LNG is a 2.1mn metric tons/year LNG export facility with 250,000 m3 of floating storage capacity being built near Squamish, north of Vancouver. The project is underpinned by two long-term offtake agreements with BP Gas Marketing for 15 years representing 70% of the capacity, with additional commitments in development for up to 90%.
Under the partnership agreement, Enbridge will take a 30% ownership interest in the $5.1bn project, with Pacific Energy retaining the remaining 70% stake.
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Woodfibre LNG positions itself as the one of the lowest-emission LNG export facilities in the world. The project is the only one in Canada with a non-treaty Indigenous-issued environmental assessment certificate, the first project approved under the Government of Canada’s “Five Principles” for environmental assessment, and has received all major federal, provincial and First Nations approvals.
“This partnership is a milestone for the Woodfibre LNG project,” said Ratnesh Bedi, president of Pacific Energy. “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.”
“As a leader in the energy transition, Enbridge is excited to participate in the Woodfibre LNG facility through this partnership,” Enbridge CEO Al Monaco said. “This facility will provide global LNG markets with a safe, secure and sustainable source of BC 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,” added Monaco.
Woodfibre announced in April that it had issued notice to proceed to global engineering and construction company McDermott International. The project is expected to be in service in 2027.