An Asian plan for the second British Columbia (BC) liquefied natural gas (LNG) export terminal, Woodfibre LNG, on Tuesday secured a supply source with a corporate takeover.
Woodfibre’s project sponsor Singapore-based Pacific Oil and Gas Ltd. announced an agreement to buy privately held Calgary-based producer Canbriam Energy Inc., which produces about 200 MMcf/d from the prolific Montney formation, which straddles BC and Alberta.
Transaction costs and other details were not disclosed.
Owners of 90% of Canbriam have agreed to the deal, which is scheduled to close by July 1. The assets include additional Montney drilling rights and gas processing facilities.
Woodfibre last fall cleared a major BC hurdle with a cooperation and benefits agreement with the aboriginal community situated next to the proposed terminal. The terminal would be sited at a former pulp mill north of Vancouver.
The project has a Canadian gas export license for 2.1 million metric tons/year of LNG, or 260 MMcf/d. BC utility FortisBC has agreed to provide pipeline service.
China’s CNOOC Gas and Power Trading & Marketing Ltd. has committed to take about one half of the proposed exports starting in 2023.