Enbridge wraps up Woodfibre LNG stake buy

Canadian pipeline operator Enbridge has completed the previously announced purchase of a 30 percent stake in Pacific Energy’s Woodfibre LNG export project in British Columbia.

The two firms announced the deal in July this year for Enbridge to buy the stake and invest in the construction and operation of the C$5.1 billion Woodfibre LNG project.

Enbridge now has a 30 percent ownership stake in the Woodfibre LNG project, with Pacific Energy retaining the remaining 70 percent stake in the project.

Pacific Energy and Enbridge would each make pro-rata contributions during construction through a combination of expected asset level financing and equity investments, Enbridge said in a statement on Tuesday.

In exchange for its capital contribution, Enbridge would receive a preferred equity interest that provides predictable future cash flows, it said.

The partners will jointly participate in the project’s execution and governance of ongoing operations, while Pacific Energy retains responsibility for daily operations.

Enbridge said that preliminary construction activities, including site preparation are underway and the project “remains on track for its targeted in-service date of Q4 2027.”

Woodfibre LNG hired a construction contractor with strong links to Squamish Nation in October to conduct work at the site of its 2.1 mtpa LNG terminal in British Columbia.

Under the contract, Canadian firm Graham Construction will conduct onshore work, which involves the final stages of cleaning up the previous pulp and paper mill at the Woodfibre site.

The project has two long-term offtake agreements with BP Gas Marketing for 15 years representing 70 percent of the capacity, with additional commitments in development for up to 90 percent, according to Woodfibre LNG.

In addition, Woodfibre LNG awarded a contract to Siemens Energy to work on the all-electric plant and also issued a notice to proceed to US contractor McDermott to start work on the project.

Woodfibre LNG has not yet announced a final investment decision on the plant.

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