Woodfibre LNG Limited Signs LNG Supply Agreement with China's Guangzhou Gas Group

Woodfibre LNG Limited has signed a preliminary agreement with China’s Guangzhou Gas Group Co., Ltd concerning potential LNG offtake of 1 mtpa of LNG for 25 years starting in 2020.

The LNG will be sourced from the Woodfibre LNG project, which is being developed in the District of Squamish, British Columbia by Woodfibre LNG Limited, a Canadian-based affiliate of Woodfibre LNG Export, the company said in a statement released on Monday.

Woodfibre LNG Export, a part of the Pacific Oil & Gas group of companies, has secured an export license from the National Energy Board in Canada to export approximately 2.1 million tonnes of LNG from the Woodfibre LNG Project for a period of 25 years. The project is expected to start production in 2020 with an annual capacity of approximately 2.1 million tonnes.

Monday’s announcement follows the signing in September of 2014 of a memorandum of understanding between Woodfibre LNG Export and Guangzhou Gas Group concerning the potential LNG offtake agreement.

“This preliminary agreement gets us one step closer to making the Woodfibre LNG Project a reality," said Byng Giraud, Country Manager and Vice President Corporate Affairs, Woodfibre LNG Limited. 

The preliminary agreement includes a potential investment of up to 10 percent of the equity of Woodfibre LNG Limited by Guangzhou Gas Group.