- Enbridge (ENB) and Pacific Energy will jointly invest in the Woodfibre LNG Project
- Woodfibre is a 2.1-million-tonne-per-year liquefied natural gas (LNG) export facility under construction in B.C.
- The $5.1 billion project will be one of the lowest-emission LNG export facilities in the world
- Pacific Energy will retain a 70-per-cent ownership stake with Enbridge investing in the remaining 30 per cent
- McDermott International will oversee construction with the project expected to be in service by 2027
- Enbridge is a hydrocarbon and renewable energy provider active in Canada, the U.S. and Europe
- Enbridge (ENB) is up by 0.36 per cent trading at $57.555 per share
Enbridge (ENB) and Pacific Energy will jointly invest in the Woodfibre LNG Project.
Woodfibre is a 2.1-million-tonne-per-year liquefied natural gas (LNG) export facility being built near Squamish, B.C. The project is underpinned by two long-term offtake agreements with BP Gas Marketing Limited for 15 years representing 70 per cent of capacity, with developing commitments for up to 90 per cent.
Woodfibre will use renewable hydroelectric power, making it one of the lowest-emission LNG export facilities in the world. It is also the only project in Canada with a non-treaty Indigenous-issued environmental assessment certificate and the first project approved under the Government of Canada’s Five Principles for environmental assessment. It has received all major federal, provincial and First Nations approvals.
Enbridge will invest in a 30-per-cent stake in the $5.1 billion project, while Pacific Energy will retain the remaining 70 per cent. Enbridge will also receive a preferred equity interest that provides predictable future cash flows.
Pacific Energy will be responsible for daily operations with Enbridge contributing to execution and governance discussions.
McDermott International will oversee construction with the project expected to be in service by 2027.
The parties view the project as key to reducing greenhouse gas emissions through the displacement of coal-fired power generation.
“As a leader in the energy transition, Enbridge is excited to participate in the Woodfibre LNG facility through this partnership,” said Al Monaco, Enbridge’s President and CEO. “This facility will provide global LNG markets with a safe, secure and sustainable source of B.C. natural gas through long-term transportation agreements on our T-South pipeline system. This investment is a natural extension of our export pipeline strategy, with strong commercial underpinnings.”
Pacific Energy is an independent energy resources development company under the Singapore-based RGE group.
Enbridge provides energy to millions of consumers through its North American natural gas, oil and renewable power networks and its growing European offshore wind portfolio.
Enbridge (ENB) is up by 0.36 per cent trading at $57.555 per share as of 12:10 pm EST.
