Woodfibre LNG, which is proposing to build a LNG processing and export facility in British Columbia, Canada, has secured facilities permit from the BC Oil and Gas Commission (BC OGC) for the project.

The LNG facility is planned to be built at the former Woodfibre pulp mill site, about 7km southwest of Squamish, British Columbia.

Subject to 35 conditions, the permit will allow for construction, maintenance and operation of the LNG facility.

Woodfibre LNG project is estimated to cost $1.4bn (£1.1bn) to $1.8bn (£1.4bn)

The Woodfibre LNG is estimated to be built with a cost of  $1.4bn (£1.1bn) to $1.8bn (£1.4bn). With a storage capacity of 250,000m3, the facility is licensed to export about 2.1 million tonnes of LNG annually for 40 years.

Commenting on the permit, Woodfibre LNG president David Keane said: “This is a positive step forward as we work to build the cleanest LNG export facility in the world.

“This permit specifies requirements the project must comply with for design, construction and operation of the Woodfibre LNG Project, with a focus on public and environmental safety.

“Previous to this permit, Woodfibre LNG is proud to have received three major environmental assessment approvals. Our environmental assessment process with the Squamish Nation is the first of its kind in Canada. The progress we have made would not be possible without the contributions and feedback made by our First Nation partners and the Squamish community.

“As we move towards construction, we will strive to exceed the high standards of public and environmental safety that are expected of us by the Canadian, B.C., and Squamish Nation governments, and the Squamish community.”

Recently, Woodfibre LNG Export has signed a binding LNG sales and purchase agreement (SPA) with BP for the supply of LNG from Woodfibre LNG export facility.

Under the terms of the SPA, BP will receive 0.75 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis for over 15 years. First delivery is scheduled to commence in 2023.

BP Canada Energy Group (BP Canada) is also working on an agreement with PO&G to provide gas transportation and balancing services to ensure reliable gas delivery to the Woodfibre LNG export facility, over 15-year period.