The investment will also support the expansion of FortisBC Energy’s Eagle Mountain to Woodfibre pipeline, which will connect the LNG facility through FortisBC’s system to Enbridge's T-South natural gas transmission system
Woodfibre LNG awards EPFC contract to McDermott. (Credit: McDermott)
Canadian pipeline company Enbridge has teamed up with energy resources developer Pacific Energy to advance the development of the Woodfibre LNG project.
Under the partnership, Enbridge will invest $1.5bn in the construction and operation of the LNG project, which is being constructed near Squamish, British Columbia.
Enbridge will acquire a 30% ownership stake, and Pacific Energy will retain the remaining 70% stake in the Woodfibre LNG project, which is valued at $5.1bn.
Pacific Energy president Ratnesh Bedi said: “This partnership is a milestone for the Woodfibre LNG project, and it further accelerates Canada’s ability to be a meaningful player in the global energy transition with the production of the world’s lowest carbon LNG.”
The Woodfibre LNG facility will have 2.1 million tonnes per annum liquefied natural gas (LNG) export capacity, and 250,000m3 of floating storage capacity.
The project is supported by a 15-year long-term offtake agreement with BP Gas Marketing for 70% of the capacity, and additional commitments in development for up to 90%.
Earlier this year, Woodfibre LNG issued notice to proceed to engineering and construction company McDermott International, with plans to start up the project in 2027.
Woodfibre LNG will use electric motor drives powered by renewable hydroelectric power, and become one of the world’s lowest-emission LNG export facilities, said Enbridge.
Enbridge president and chief executive officer Al Monaco said: “This investment is a natural extension of our export pipeline strategy, with strong commercial underpinnings.
“Expanding global access to natural gas through LNG will play a critical role in North America’s energy future and will help to reduce the world’s greenhouse gas emissions through the displacement of coal-fired power generation, creating strong alignment with our ESG goals.”
The capital investment in the project will also include providing construction support for the expansion of FortisBC Energy’s Eagle Mountain to Woodfibre pipeline.
The pipeline will connect the LNG facility through FortisBC’s system to Enbridge’s T-South natural gas transmission system.
Pacific Energy and Enbridge will each contribute during construction, through a combination of asset-level financing and equity investments, on a pro-rata basis.
In November last year, McDermott International has been awarded an engineering, procurement, fabrication and construction (EPFC) contract for the construction of Woodfibre LNG.
McDermott president and chief executive officer Michael McKelvy said: “The addition of Enbridge is a natural fit as we work together to build the lowest-emission, most sustainable and innovative LNG export facility in the world.
“Their proven commitment to enabling a new generation of sustainable energy solutions aligns directly with our goal to set a new standard for efficient plant design.”