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Woodfibre LNG places order for heat exchanger

Construction on British Columbia facility expected to start later this year

The developers of the Woodfibre liquefied natural gas export terminal on Canada's West Coast have ordered the facility's main cryogenic heat exchanger as the project moves closer to a final investment decision this year.

Woodfibre LNG did not say who would provide the equipment, which cools natural gas feedstock to convert it into a liquid.

"This critical piece of equipment is the longest lead item on the project’s critical path," Woodfibre LNG said in a release.

Woodfibre LNG president David Keane said the purchase indicates the project's "continued commitment to moving forward towards our FID and start of construction later this year".

Singapore-based Pacific Oil & Gas is developing the 2.1 million tonnes per annum facility in Squamish, British Columbia.

Pacific recently said it had 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.

Woodfibre LNG has also signed long-term offtake agreements for two other customers -- one from China and one from Japan.

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.

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