After weathering delays from the Covid-19 pandemic, construction preparations are starting for the liquefied natural gas (LNG) terminal on the Pacific Coast of British Columbia (BC) developed by Woodfibre LNG Ltd. 


The Vancouver-based unit of Pacific Energy Corp Ltd. reported it has given the project’s contractor McDermott International Ltd. a limited notice to proceed on site work “in order to move the project toward major construction commencement in 2023.”

The company announced a revised timeline for the C$1.6 billion ($1.3 billion) project last fall. The terminal is now projected to reach startup in  2027, exporting  2.1 million metric tons/year (mmty) of Montney Shale gas for the next 40 years.

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The project could be the second BC overseas gas export terminal to enter construction once the preparation work is completed. Woodfibre LNG is less than half the size of the LNG Canada project being built on the province’s northern Pacific Coast at Kitimat.

Woodfibre LNG has estimated its terminal could reduce global carbon emissions by 3.5 mmty by reducing coal use in Asia.

Woodfibre LNG has also disclosed that its Singapore-based owner has a C$625 million ($500 million) 2022 budget for preparation work and engineering. 

Covid-19 and unsettled market conditions postponed a planned mid-2020 construction start. Woodfibre obtained a five-year extension, until October 2025, of its BC regulatory approval deadline for beginning the work.

During Woodfibre LNG’s prolonged planning stage, Pacific Energy secured a supply source with a takeover of Calgary producer Canbriam Energy Inc. and a sales agreement was made with BP Gas Marketing Ltd.

In addition to its Canadian gas export license, the project also has a consent agreement from its BC native neighbors, a pipeline service agreement with utility FortisBC and a sales arrangement with China’s CNOOC Gas and Power Trading & Marketing Ltd.