Woodfibre LNG is a liquified natural gas (LNG) export facility under construction near Squamish, BC.
Partners
Woodfibre is a partnership between Pacific Energy Corporation (Canada) Limited (70 percent) and Enbridge Inc. (30 percent). Pacific Energy Corp. is reported to be part of the Singapore-based RGE Group, owned by Indonesian businessman Sukanto Tanoto.
Production
Woodfibre is expected to produce approximately 2.1 million tonnes of LNG per year starting in 2027. The facility will have 250,000 cubic metres of floating storage. Construction is the responsibility of McDermott International.
Natural gas will be supplied via the Eagle Mountain – Woodfibre Pipeline (Environmental Assessment Certificate granted August 2016) being constructed by FortisBC Energy Inc.
The BC government exempted the pipeline project from the need for approval by the BCUC and required the BCUC to allow Fortis to collect the pipeline’s costs from its natural gas customers. The government also directed the BCUC to approve a Large Volume Industrial Transportation Rate Schedule 50 (also known as RS50), which the BCUC duly approved (and subsequently amended in 2023). The amendment, required by government, also included an RS50 transportation agreement between FortisBC Energy Inc., Pacific Energy Corp and Woodfibre LNG Limited to supply gas to the LNG site.
Regulatory approvals
Woodfibre was granted a 25-year export licence in December 2013 from the Canadian Energy Regulator. This was updated in April 2017 to a 40-year licence.
It received its Environmental Assessment Certificate from the BC Environmental Assessment Office in October 2015. The start date of the certificate was extended by five years in 2020.
The federal environmental approval was received in March 2016, and reissued in March 2018 following the extension of the export licence to 40 years.
Cost
The cost of the Woodfibre project was originally estimated to be US$5.1 billion, including a contribution in aid of construction for the expansion of the Fortis pipeline to serve the facility. However, the cost is reported to have almost doubled due to “permit delays, building code changes, and site challenges”.
Sales
It was reported in 2022 that BP Gas Marketing Ltd. had committed to 70 percent of the capacity for 15 years, with other commitments “in development”.
Energy use
Liquification will be done with electric compressors. The power requirement is estimated to be 140 MW.
Emissions
Woodfibre claims to be the world’s first net zero LNG export facility. The resulting carbon intensity will be 0.04 tonnes of CO2 equivalent per tonne of LNG. At 2.1 million tonnes of LNG per year, this equates to 84,000 tonnes of CO2 equivalent per year.
The remaining emissions will be negated with “nature-based carbon offsets” making the site net zero throughout construction and operations.