Woodfibre LNG floatel permit rejected

Squamish council rejected Woodfibre LNG’s application for a one-year temporary use permit for a floatel which will provide workforce accommodation for its LNG export plant in British Columbia.

In November 2023, Woodfibre LNG, owned 70 percent by Pacific Energy and 30 percent by Enbridge, awarded a contract to Bridgemans Services to provide on-site workforce accommodation for its project.

Converted cruise ship Isabelle X is currently at anchor in the port of Nanaimo while awaiting mobilization to the Woodfibre LNG site in spring 2024.

“We were disappointed with the district council’s non-decision on the zoning temporary use decision for the floatel,” Woodfibre LNG president, Christine Kennedy, said in an emailed statement.

“The district has asked repeatedly since 2019 – to the company and to regulators – that the Woodfibre LNG project workforce be housed outside Squamish, which is exactly what the floatel delivers,” she said.

The floatel has already been approved by federal, provincial, and Squamish Nation regulators as the housing approach for the project.

“Additionally, district council is aware that the provincial government has jurisdiction over floatel-related management plans,” Kennedy said.

“Woodfibre LNG will continue to work with the district on a path forward on the temporary use permit zoning decision as had been recommended by district staff. Construction of the project continues,” she added.

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.

Construction

Woodfibre LNG told LNG Prime in August 2023 that it plans to start construction work in September on its $5.1 billion LNG export facility near Squamish.

“Construction at the Woodfibre LNG site continues, focused on work to prepare the site for facility construction later this year, as well as preparatory work to welcome the floatel, which will house 652 non-local workers outside of the community of Squamish,” Woodfibre LNG said in its April 2024 construction update.

“In accordance with existing permits from the district of Squamish, clearing and grubbing the side slope continues in preparation for blasting later this spring – which will make it possible for the construction of the marine terminals to begin during the next marine window of least risk (August 2024-January 2025),” the firm said.

To support the arrival of the floatel, installation of gangways onto the site have occurred, as well as construction of a water distribution line to support the floatel, Woodfibre LNG said.

The company expects to launch operations at this onshore gas processing and liquefaction facility with floating storage of about 250,000 cbm in 2027.

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.

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