Woodfibre inks new 15-year LNG deal with BP
Woodfibre LNG has taken another step forward with the signing of a new sale and purchase agreement with BP.
Under the agreement, Woodfibre LNG, a unit of Pacific Oil & Gas, will deliver 0.75 million tonnes per annum of LNG to BP’s unit BP Gas Marketing.
The contract has a 15-year term with deliveries on a free-on-board (FOB) basis.
This latest SPA will increase BPGM’s total LNG off-take to 1.5 MTPA, over 70 per cent of Woodfibre LNG’s future annual production.
The Woodfibre LNG project is located approximately 7 km west-southwest of Squamish, British Columbia.
It involves the construction and operation of a liquefied natural gas (LNG) export facility on the previous Woodfibre pulp mill site.
The facility would have a storage capacity of 250,000 cubic meters and would produce approximately 2.1 mtpa of LNG.
The construction of the project was planned to start in 2020, however due to the effects of the COVID-19 pandemic this has been pushed back into summer of 2021.
The project has also secured a five-year extension of its environmental assessment certificate from the provincial Environmental Assessment Office.