Canadian LNG project inks new SPA [UPDATE]
Woodfibre LNG, a 2.1mn mt/yr natural gas liquefaction and export terminal on Canada’s west coast north of Vancouver, said May 6 it had signed a second sales and purchase agreement (SPA) with BP Gas Marketing (BPGM), ahead of a planned construction start later this year.
Under the terms of the SPA, BPGM will receive 0.75mn mt/yr of LNG over 15 years on a free-on-board (FOB) basis, increasing its total offtake from Woodfibre to 1.5mn mt/yr, or more than 70% of the terminal’s annual output.
Woodfibre LNG is a privately-held subsidiary of Singapore’s Pacific Oil & Gas (PO&G), part of the RGE Group of companies.
“Forward-looking companies like BP are turning to projects like ours for sustainable, stable gas that will supply a clean energy mix,” PO&G president Ratnesh Bedi said. “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.”
A spokeswoman told NGW via email that a final investment decision is targeted for Q3, while Woodfibre is close to finalising an engineering, procurement and construction contract. After that, she said, construction timelines would be updated.