British oil major bp has signed an agreement for liquefied natural gas (LNG) offtake from the Woodfibre LNG facility due to be built in British Columbia (BC), Canada.
Under the 15-year agreement, bp will offtake 0.45 million tonnes of LNG per year (mtpa) on a free on board (FOB) basis from the Woodfibre LNG facility.
Earlier, Woodfibre LNG signed LNG offtake agreements with bp, marking around 70% of the plant’s capacity.
With the latest contract, bp’s wholly owned indirect subsidiary bp Gas Marketing has committed to purchase all 1.95mtpa of LNG output from the Woodfibre LNG facility, and the remainder on a flexible offtake basis.
Furthermore, bp will provide the Woodfibre LNG export facility with a safe and reliable gas transportation service during the 15-year contact term.
In a press statement, bp said: “bp continues to look for opportunities across the gas value chain, as it sees LNG as an essential part of the energy transition and its own pivot to becoming an integrated energy company.
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“As bp works towards building an LNG portfolio of 30 million tonnes by 2030, the additional Canadian west coast supply source expands bp’s flexible, high-quality LNG portfolio and further enhances the company’s capability to meet the growing global natural gas demand.”
The Woodfibre LNG Project is owned by Woodfibre LNG Limited Partnership, in which Pacific Energy Corporation (Canada) owns a 70% stake and Enbridge owns a 30% interest.
Due to be built in Squamish, BC, the Woodfibre LNG facility will have an export capacity of 2.1mtpa and a 250,000m³ floating storage capacity.
Construction on the Woodfibre LNG facility is scheduled to commence this month, with operations due to start in 2027.