Project changes awaiting regulatory approval and equipment delivery interruptions by the Covid-19 pandemic have delayed the scheduled 2020 construction start for a small liquefied natural gas (LNG) export project slated for Canada’s west coast.
Woodfibre LNG in a project filing with the British Columbia Environmental Assessment Office (BCEAO) requested an extension to 2025 for approval of the C$1.6 billion ($1.2 billion) facility to export up to 260 MMcf/d.
The request is attributed to time needed to obtain BCEAO consent for changes to the terminal cooling system and construction workforce accommodation, as well as closure of an Asian equipment supplier during the pandemic. The agency’s procedures include time for public comment on proposed approval amendments.
The revised project plan sets a 2021 target for starting construction on Woodfibre on the former site of a pulp mill north of Vancouver. The requested five-year permit extension would build flexibility into the schedule.
The project’s Singapore-based owner, Pacific Oil & Gas Ltd., has secured a supply source with a corporate takeover of Calgary producer Canbriam Energy Inc. A sales agreement has been made with BP Gas Marketing Ltd.
Woodfibre also has a 40-year Canadian gas export license, a cooperation and benefits settlement with the native tribe at its terminal site, a pipeline service agreement with utility FortisBC and a sales arrangement with China’s CNOOC Gas and Power Trading & Marketing Ltd.