Woodfibre LNG Signs Long-Term Contract with bp for LNG Supply

One sentence summary – Woodfibre LNG has signed a long-term contract with bp to exclusively sell all LNG produced at its facility, adding 0.45 million tonnes annually to bp’s supply for 15 years, contributing to bp’s supply positions in the Pacific region and supporting its strategic goals, while Woodfibre LNG aims to achieve Net Zero emissions by 2027 and is designed to be the lowest carbon intensive LNG export facility globally.

At a glance

• Woodfibre LNG signs third long-term LNG contract with bp
• All LNG produced at Woodfibre LNG will be sold exclusively to bp
• Contract adds 0.45 million tonnes of LNG annually to bp’s supply for 15 years
• bp’s total offtake from Woodfibre LNG reaches 1.95 million tonnes annually
• bp responsible for transporting gas to Woodfibre LNG export facility

The details

Woodfibre LNG, a proposed liquefied natural gas (LNG) export facility in British Columbia, has recently signed its third long-term LNG contract with bp, a major energy company.

All LNG produced at the Woodfibre LNG facility will be exclusively sold to bp under this agreement.

This contract adds an additional 0.45 million tonnes of LNG annually to bp’s supply for a duration of 15 years.

With this latest contract, bp’s total offtake from Woodfibre LNG reaches 1.95 million tonnes annually.

In addition to the LNG purchase, bp will also be responsible for transporting gas to the Woodfibre LNG export facility throughout the contract term.

This collaboration aims to enhance bp’s supply positions in the Pacific region, ensuring a stable and reliable source of Canadian LNG.

Jonathan Shepard, Vice-President of Global LNG Trading and Origination at bp, expresses confidence in the growing global demand for LNG.

This additional Canadian supply source will contribute to meeting the needs of the market and support bp’s strategic goals.

Woodfibre LNG is in the pre-construction phase and is regulated by the Squamish Nation, British Columbia government, and Canadian government.

The site of the facility was previously used for pulp and paper operations and holds historical significance as a fishing village for the Squamish Nation.

One notable aspect of Woodfibre LNG’s operations is its commitment to sustainability.

The facility aims to achieve Net Zero emissions by 2027, ahead of government regulations.

Christine Kennedy, President of Woodfibre LNG, emphasizes that achieving Net Zero will contribute to the global energy transition.

Moreover, Woodfibre LNG is already designed to be the lowest carbon intensive LNG export facility globally, with an annual emissions profile of 83,374 tonnes of CO2e and a carbon intensity of 0.04.

To further address its environmental impact, Woodfibre LNG will offset emissions during the construction phase of the project.

This demonstrates the company’s dedication to minimizing its carbon footprint and acting responsibly.

In related news, the upcoming CO2 Summit 2023 will provide a platform to discuss challenges and opportunities in the carbon dioxide industry, including sourcing, storage, and distribution.

This event will likely contribute to the broader conversation surrounding sustainable energy solutions.

Overall, the Woodfibre LNG export facility’s recent long-term contract with bp signifies a significant step forward in establishing a sustainable and reliable LNG supply chain.

The collaboration between these two entities not only supports bp’s strategic goals but also highlights Woodfibre LNG’s commitment to environmental responsibility and the energy transition.

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