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Construction to begin on Woodfibre LNG

Construction to begin on Woodfibre LNG
WOODFIBRE LNG - A rendering shows the Woodfibre LNG project in Squamish, B.C. The project announced it will begin major preconstruction work with main construction work to commence in 2023.

SQUAMISH, B.C. – The Woodfibre LNG project in Squamish, B.C. is moving ahead with construction.

Woodfibre LNG Limited announced that it has issued a Notice to Proceed to prime contractor McDermott International. 

McDermott will now begin the work required in order to move the project toward major construction commencement in 2023. The project team plans to reach substantial completion in 2027.

The project team stated that the facility will be powered with renewable hydroelectricity, making it lowest-emission LNG export facility in the world. When shipped to Asia where it will replace coal-fired electricity, the LNG produced at the Woodfibre facility will reduce 3.5 million tonnes of CO2 per year, equivalent to 5 per cent of B.C.’s annual emissions.

Woodfibre LNG is a Canadian subsidiary of Pacific Energy based in Singapore. It is approved and regulated by the Canadian and B.C. governments and by the Squamish Nation. Woodfibre LNG is the first industrial project in Canada to recognize an Indigenous people as a full project regulator in the absence of a treaty.

“Woodfibre’s decision to issue a notice to proceed to its prime contractor, McDermott International, is a strong indication that industrial companies see B.C. as a secure jurisdiction in which to invest,” said Bruce Ralston, minister of energy. “Woodfibre LNG was permitted in 2015 and recently announced a further $600 million in its project this year. This shows confidence in our stringent regulatory process.”

The proposed export facility plans to source its natural gas from Pacific Canbriam Energy, a Canadian company with operations in northeastern B.C. 

The facility would have a storage capacity of 250,000 cubic metres and a production capacity of 2.1 million tonnes of LNG per year. It is expected the project could generate more than $80 million per year in tax revenue for the government.

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