bp Gas Marketing Ltd. (BPGM), a wholly owned indirect subsidiary of bp plc, has entered its third long-term liquefied natural gas (LNG) offtake contract from the 2.1-million tonne/year (tpy) Woodfibre LNG plant in British Columbia, Canada.
With the additional contract to offtake 0.45 million tpy of LNG for 15 years on a free on board (FOB) basis, all the LNG production from the Woodfibre LNG export plant is now committed for sale to bp, with firm offtake totaling 1.95 million tpy and the remainder on a flexible offtake basis, the company said in a release Sept. 5.
bp, which aims to build an LNG portfolio of 30 million tonnes by 2030, also has committed to providing transportation of natural gas to the Woodfibre LNG export plant during the 15-year contact term.
Woodfibre LNG is scheduled to begin construction in September with operations expected to begin in 2027.
The Woodfibre LNG project is owned by Woodfibre LNG LP, owned 70% by Pacific Energy Corp. (Canada) Ltd. and 30% by Enbridge Inc. (OGJ Online, Aug. 2, 2022; Nov. 23, 2021).
Woodfibre LNG will source its natural gas from Pacific Canbriam Energy, a subsidiary of Pacific Energy Corp. Ltd., and expects to achieve net zero status by 2027 in part through use of electric compressors using renewable hydroelectricity from BC Hydro.