Woodfibre LNG, a subsidiary of Pacific Oil & Gas Ltd, has signed an LNG sales and purchase agreement (SPA) with a wholly owned, indirect subsidiary of BP
Covering the delivery of 0.75 mta for over 15 years on a free on board basis, this is the second SPA signed between Woodfibre LNG and BP Gas Marketing Limited (BPGM), increasing their total LNG offtake to 1.5 mta – over 70% of Woodfibre LNG’s future annual production.
Being developed on the former site of a pulp mill about 70 km north of Vancouver, British Columbia, Canada, Woodfibre LNG would have two trains with a nameplate capacity of 2.1 mta and storage capacity for 250,000 m3 of LNG.
Powered by hydroelectric power, Woodfibre LNG’s electric drive turbines are expected to significantly reduce the total greenhouse gas emissions of the LNG project.
“Forward-looking companies like BP are turning to projects like ours for sustainable, stable gas that will supply a clean energy mix,” said Pacific Oil & Gas president Ratnesh Bedi. “We look forward to working with BPGM to deliver Canadian natural gas from one of the lowest carbon footprint LNG facilities in the world and help advance the climate goals of growing economies as they phase away from coal, lower their emissions, and meet net-zero targets.”
Added Woodfibre LNG president Ron Bailey, “The use of renewable energy for e-drive power places Woodfibre – and Squamish – at the forefront of the world’s clean energy transition.”
FID on the US$1.3Bn project is expected this year.
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