Woodfibre LNG project signs preliminary 13-year export deal

Image: Woodfibre LNG

Correction: This article previously erroneously stated that Chevron is the owner of the Woodfibre LNG project. We apologize for the error.

The proposed Woodfibre LNG project in Squamish, B.C. has reached a preliminary agreement with the first and largest LNG importer in China.

As with its other offtake agreements, this deal will be finalized closer to the start of plant operations, according to Woodfibre LNG.

Pacific Oil & Gas Limited announced that on Sept. 29, its subsidiary Woodfibre LNG had signed an agreement with CNOOC Gas and Power Trading & Marketing Limited for the potential purchase of 0.75 mmtpa of LNG for 13 years starting in 2023.

The deal is a non-binding commitment that sets out the key terms of a proposed agreement between parties.

CNOOC Gas & Power Group Ltd. has launched nine LNG receiving terminals in China, and imported more than 20 million tonnes of LNG in 2017, according to Woodfibre LNG.

The Squamish plant will have a storage capacity of 250,000 cubic metres and is licensed to export approximately 2.1 million tonnes of LNG per year for 40 years.

“Natural gas is recognized around the world for its role in a low carbon energy future and we are proud to have an opportunity, even in a small way, to be part of this energy transition," Pacific Oil & Gas president Ratnesh Bedi said in a statement on Monday.

Local environmental group My Sea to Sky was quick to dismiss the announcement as “smoke and mirrors.”

“This is the third non-binding agreement that Woodfibre LNG has announced, and neither of the two previous agreements have proceeded to a final contract to purchase LNG from Woodfibre LNG,” the group said in an emailed statement.

“Building new fossil fuel infrastructure is not compatible with achieving BC’s goals to reduce our greenhouse gas emissions. Claims that BC LNG will help to solve China’s air pollution are also unsubstantiated.”

— Squamish Chief

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