See all articles

Woodfibre LNG gets key permit

British Columbia authorities issue facilities permit for construction and operation

British Columbia regulators have issued a key permit for the construction of the 2.1 million tonnes per annum Woodfibre liquefied natural gas export facility, keeping the project on track for a final investment decision later this summer.

The western Canadian province's Oil and Gas Commission on Tuesday issued a facilities permit to the project on Tuesday. The permit specifies requirements for design, construction and operation of Woodfibre LNG, which is being developed by Singapore-based Pacific Oil & Gas.

"This is a positive step forward as we work to build the cleanest LNG export facility in the world," Woodfibre LNG president David Keane said in a statement.

"This permit is a large piece of our puzzle, and with it in place, we are working towards a final decision to proceed with this project this summer."

Pacific recently said it had has signed a binding LNG sales and purchase agreement with BP, under which the UK supermajor will receive 750,000 tonnes per annum of LNG from the Woodfibre facility over 15 years on a free on board basis, with first delivery expected in 2023.

In addition, the two companies are working on a deal for BP to provide gas transportation and balancing services ensuring to deliver feedstock to the Woodfibre LNG facility over the term of the contract.

On the engineering side Woodfibre has signed two separate framework agreements — one for engineering and procurement work, and another with a Canadian company for construction of the facility —that were expected to be finalised by the end of June.

Latest news
Most read