BP commits to last of offtake from Woodfibre LNG

Woodfibre LNG, a 2.1mn tonnes/year liquefaction facility planned near Squamish, BC, said September 5 it had sold the last of its offtake to bp Gas Marketing (BPGM), an indirect subsidiary of BP.

The third LNG sales and purchase agreement with BP covers 450,000 tonnes/year of LNG on a free-on-board basis over 15 years, bringing BP’s total firm commitment from Woodfibre to 1.95mn tonnes/year. The British major will take the remaining capacity on a flexible basis, Woodfibre said.

“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,” Woodfibre LNG CEO Christine Kennedy said. “Today’s announcement demonstrates there is demand for lower-carbon energy today and well into the future.”

Woodfibre LNG is a subsidiary of Pacific Energy, part of Singapore’s RGE Group. Pacific Energy owns 70% of Woodfibre LNG, with Canadian midstream infrastructure company Enbridge holding the remaining 30%.

Woodfibre LNG is set to begin construction this month, with operations targeted to begin in 2027. Gas will be sourced from Pacific Canbriam Energy, also a subsidiary of Pacific Energy.