Woodfibre LNG Awards EPFC Contract to McDermott to Build World’s Lowest-Emission LNG Facility

Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International for building the lowest-emission LNG facility in the world.

Commenting on the partnership, Christine Kennedy, president of Woodfibre LNG, said “our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure. Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic Reconciliation, this is the first arrangement of its type for an LNG facility.”
 
By harnessing the low-carbon gas resources of British Columbia's Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes CO2e per annum, equivalent to removing 5 per cent of B.C.'s annual emissions from the atmosphere each year.

The two companies collaborated on front-end engineering and facility design, relative to typical LNG facilities, which would result in an ~86 per cent reduction in carbon dioxide emissions per tonne of LNG produced.
 
The company in a statement said that “Woodfibre LNG, a subsidiary of Pacific Energy Corporation (Canada) Ltd, will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy across every element of engineering and design.”

The facility would use hydroelectricity for the main liquefaction process and includes state-of-the-art technology that enables liquefaction machinery to restart without flaring, a recycling system for boil-off gas, and additional transformers, switchgear and transmission lines.

Altogether, this results in the most groundbreaking technical achievement in the world of LNG and sets a new standard for efficient plant design. This next-generation LNG production is in high demand. Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 per cent of Woodfibre’s annual throughput has already been sold.
 
Besides EPFC work, McDermott will also be responsible for commissioning and start-up services pre-installation work for the project is expected to be scheduled for early 2022 and will gradually ramp up to September 2023, when major construction has been targeted to begin. Major works will continue through to substantial completion, expected in Q3 2027.