The provincial environmental regulator in Canada’s British Columbia has ordered Woodfibre LNG to move the converted cruise ship Isabelle X off Squamish to use the floatel for non-local workforce accommodation.
Woodfibre LNG, owned 70 percent by Pacific Energy and 30 percent by Enbridge, said in a statement on Monday it has received a compliance order from the BC Environmental Assessment Office, requiring the company to deploy the floatel to the project site.
The regulator said that Woodfibre LNG is housing workers contrary to the requirements of its environmental assessment certificate, including about 300 workers at a construction camp in Port Mellon and 30 workers in local hotel accommodations in Squamish.
Woodfibre LNG told the regulators that workers are currently housed in a manner contrary to the certificate because a specific permit is required by the local government and that permit has not been issued.
As previously reported, Squamish council rejected Woodfibre LNG’s application for a one-year temporary use permit for the floatel which will provide workforce accommodation for its LNG export plant in British Columbia.
However, the British Columbia environmental regulator said that any worker who did not reside in Squamish prior to September 20, 2023, or was granted an exception, is required to reside on the floatel.
Woodfibre LNG to move floatel to ensure compliance
Woodfibre LNG said it views compliance with all regulatory conditions as a “top priority”.
“The company will prepare to proceed with moving the floatel to the project site to ensure compliance with the order and our regulatory conditions, and to use the floatel for workforce housing as had been intended,” it said.
The company received approval of an amendment to its environmental assessment certificate in November 2023, authorizing use of a temporary floating worker accommodation to accommodate up to 650 members of the project workforce outside the community of Squamish.
The floatel, owned by Bridgemans Services, represents an investment of $100 million that will support a diverse workforce, provide fully contained, on-board dining, recreation and medical services and ensure that the community will not be strained by a large influx of workers, the firm said,.
Woodfibre LNG said the floatel is currently anchored near Nanaimo, ready to move to Howe Sound to accommodate non-local construction workers as it was designed to do.
BP will take all of LNG volumes
In September last year, Woodfibre LNG signed the third supply deal with UK-based energy giant BP for volumes from its planned export plant in British Columbia.
With the additional contract to offtake 0.45 million tonnes of LNG per year (mtpa) for 15 years on a free on board (FOB) basis, all of the LNG production from the Woodfibre LNG export facility is committed for sale to BP.
BP said that firm offtake totals 1.95 mtpa of LNG and the remainder is on a “flexible offtake basis”.
In addition to securing LNG offtake rights from the project, BP will provide transportation of gas to the Woodfibre LNG export facility during the 15-year contact term.
The two firms signed the second supply deal in 2021, increasing BP’s total LNG offtake to 1.5 mtpa, or more than 70 percent of Woodfibre’s future annual production.
The facility will have a capacity of 2.1 mtpa.
McDermott
In November 2021, Woodfibre LNG awarded the engineering, procurement, fabrication, and construction (EPFC) contract to McDermott.
After that, the LNG terminal developer issued a notice to proceed to McDermott in April 2022 to start work on its LNG terminal.
Qingdao McDermott Wuchuan (QMW), a joint venture consisting of US contractor McDermott and China State Shipbuilding Corporation, last year started building the first module for Woodfibre LNG.
QMW will build 19 modules for Woodfibre LNG and plans to complete the project in the third quarter of 2025.
Besides McDermott, Woodfibre LNG previously also awarded a contract to Siemens Energy to work on the all-electric plant.