Woodfibre LNG tags BP as foundation buyer
Woodfibre LNG, a unit of Pacific Oil & Gas (PO&G), has signed a binding LNG sales and purchase agreement (SPA) with BP for the delivery of the chilled fuel the export facility in Squamish, British Columbia.
Under the terms of the agreement, BP will receive 0.75 million tonnes per annum (MTPA) of LNG over 15 years on a free on board (FOB) basis, with first delivery expected in 2023.
Concurrently, BP Canada Energy Group (BP Canada) and PO&G are working on an agreement for BP Canada to provide gas transportation and balancing services ensuring reliable delivery of gas to the Woodfibre LNG export facility over the 15-year term, Woodfibre LNG’s statement reads.
Speaking of the agreement which makes BP Woodfibre LNG’s foundation buyer, Jonty Shepard, CEO of BP’s LNG global business, said it broadens BP’s supplier base and further develops its LNG portfolio.
The Woodfibre LNG project is located approximately 7 km west-southwest of Squamish, British Columbia. It involves the construction and operation of an LNG export facility by Woodfibre LNG on the previous Woodfibre pulp mill site, which would have a storage capacity of 250,000 cubic meters and would produce approximately 2.1 (mtpa) of LNG.
Woodfibre LNG is a privately held Canadian company based in Vancouver, and a unit of Pacific Oil & Gas Limited.