Woodfibre LNG Secures BP Anchor
Pacific Oil & Gas (PO&G) announced June 26 that it has signed up BP as a foundation buyer for its Canadian Woodfibre LNG project.
The pair have signed a binding LNG sales and purchase agreement (SPA) that will see the UK-based major purchase 0.75mn metric tons (mt)/yr from the export facility in British Columbia. The contract will run for 15 years on a free on board (FOB) basis, with first delivery expected in 2023.
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“We are honoured to have BP as a foundation customer of our Woodfibre LNG project,” said PO&G president Ratnesh Bedi. “We look forward to providing BP with a consistent supply of flexible Canadian LNG that can displace more carbon intensive fuels.”
“This SPA further broadens our supplier base and adds to BP’s ability to offer cleaner energy to our customers around the world,” said COO of BP’s LNG global business Jonty Shepard.
PO&G also noted that it is in talks with BP Canada regarding transportation and balancing services for gas supplies to the planned LNG export facility, which is planned to have a capacity of 250,000m3/yr, or 2.1mn mt/yr.
President of Woodfibre LNG David Keane said the facility plans to supply “growing markets in Asia.”