Construction of Canada’s $5.1 billion LNG project passes the halfway mark

September 4, 2025, by Melisa Cavcic

Woodfibre Management, a privately held Canadian company based in Vancouver, has reached a new construction milestone for its operated $5.1 billion liquefied natural gas (LNG) export project, under development in British Columbia, Canada.

Modules arrive at the site in Squamish; Source: Woodfibre LNG

Following the arrival of the first seven LNG modules at the Woodfibre LNG site in Squamish, construction activities are ongoing, with plans in motion to add a second workplace accommodation unit adjacent to the existing floatel, bringing around 900 skilled trades jobs.

The latest project update indicates that the Woodfibre LNG facility is halfway done, with four new specialized LNG modules at its project site near Squamish. These modules, which were transported overseas by a heavy lift vessel, entail two pipe rack sections, a boil-off gas compressor module, and a flare knock-out drums module.

Luke Schauerte, CEO of Woodfibre LNG, commented: “The arrival of new modules is another sign of the momentum we are carrying into the second half of construction. As modules continue to arrive, we are driving towards the delivery of the world’s first net-zero LNG export facility, built to the highest standards of safety and environmental sustainability.”

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While explaining that the boil-off gas compressor helps capture natural gas that revapourizes (boils off) and re-injection back into the process to be reliquefied into LNG, the Canadian player underlines that flare knock-out drums are designed to protect the facility’s flare system by separating any liquids from gases set to be flared, ensuring safe and efficient flare operation.

With further module deliveries planned in the months ahead and into 2026, Woodfibre LNG’s construction phase is set to continue through 2025. The project is designed to be the world’s first net-zero LNG export facility, benefitting from the province’s hydroelectric capacity by using electric drives for LNG production.

This is anticipated to avoid over 230,000 tonnes of carbon dioxide equivalent versus conventional LNG facilities. The LNG project, which will produce 2.1 million tonnes of LNG for export annually, is owned by Woodfibre LNG Limited Partnership, owned 70% by Pacific Energy Corporation and 30% by Enbridge.

Deemed as the first industrial project in Canada to recognize a non-treaty Indigenous government, Squamish Nation, as a full environmental regulator, the Woodfibre LNG facility is envisioned to be the world’s first net-zero LNG facility upon completion in 2027.