Woodfibre LNG to splash $500 million on its Canadian export development in 2022

Canada’s Woodfibre LNG, a unit of Pacific Energy, said it would spend $500 million on its planned 2.1 mtpa LNG terminal in British Columbia this year.

The company revealed this in a project update released on March 22 following a meeting of Woodfibre LNG’s president, Christine Kennedy, with local government officials.

Woodfibre previously said that the project would cost up to C$1.8 billion ($1.43 billion). This means the approved budget of $500 million for 2022 would cover a large part of the total costs.

The company has not yet announced a final investment decision on the project.

In November last year, Woodfibre LNG contracted Houston-based McDermott to build its LNG terminal with floating storage of about 250,000 cbm.

Under the engineering, procurement, fabrication, and construction (EPFC) contract, McDermott would manage onshore construction of the facility located about 7 km west-southwest of Squamish.

Besides this deal, Canada’s FortisBC has recently awarded Frontier-Kemper Constructors a contract to work on a tunnel component for a pipeline that would deliver gas to the LNG plant.

Completion in 2027

Woodfibre LNG previously said that the pre-installation work for the project would begin in early 2022 and would gradually ramp up to September 2023, when the firm had expected major construction to start.

The firm said in the update on Friday it has approved spending of over C$25 million for
pre-construction works this year.

In May last year, Woodfibre LNG signed a second supply deal with a subsidiary of energy giant BP for volumes from its planned export plant.

Under the deal, BP Gas Marketing would receive 0.75 million tonnes per annum of LNG over 15 years on a free on board (FOB) basis.

This deal boosted BP’s total LNG offtake to 1.5 mtpa, over 70 percent of Woodfibre’s future annual production.

Woodfibre LNG expects substantial completion of the plant in the third quarter of 2027.

- Advertisements -

Most Popular

Sempra, Bechtel ink EPC deal for Port Arthur LNG expansion project

US LNG exporter Sempra Infrastructure, a unit of Sempra, and compatriot engineering and construction firm Bechtel have finalized a...

Venture Global’s Plaquemines LNG inks gas supply deal

Venture Global LNG's Plaquemines LNG has signed a natural gas sale and purchase deal with Houston-based midstream gas marketer...

German LNG terminal operator gets no bids in latest capacity auctions

State-owned LNG terminal operator Deutsche Energy Terminal will launch new capacity auctions for its FSRU-based facilities in Brunsbüttel and...

More News Like This

FortisBC: Tilbury LNG jetty gets OK from Canada

Canadian utility and operator of the Tilbury LNG facility in the province of British Columbia, FortisBC, and its partner...

Japan’s Chiyoda provides Golden Pass LNG update

Japan's engineer Chiyoda has released an update regarding the construction of the Golden Pass LNG export project in Texas,...

Woodfibre LNG to move floatel to project site

The provincial environmental regulator in Canada's British Columbia has ordered Woodfibre LNG to move the converted cruise ship Isabelle...

QatarEnergy, ExxonMobil update on Golden Pass LNG work

Energy giants QatarEnergy and ExxonMobil released the latest construction update for their Golden Pass LNG export terminal on the...