Woodfibre LNG Signs Another Deal with BP Gas Marketing to Supply Clean LNG

Pacific Oil & Gas Ltd’ (PO&G) wholly-owned subsidiary, Woodfibre LNG, has taken another step toward shipping some of the world’s cleanest liquefied natural gas (LNG) to Asian markets, and signed a second LNG Sales and Purchase Agreement (SPA) with BP Gas Marketing Ltd.

The move would help BPGM, a wholly-owned indirect subsidiary of BP Plc, in offsetting coal and displace millions of tonnes of greenhouse gas every year.

BP Gas Marketing Ltd (BPGM) is a wholly-owned indirect subsidiary of BP Plc.

As per the deal, the company will deliver LNG from PO&G’s Woodfibre LNG export facility near Squamish, British Columbia, and BPGM will receive 0.75 MTPA of LNG over 15 years on a free on board (FOB) basis.

Further, the latest SPA will increase BPGM’s total LNG off-take to 1.5 MTPA, over 70 per cent of Woodfibre LNG’s future annual production.

Commenting on the development, Ratnesh Bedi, President of PO&G, said “forward-looking companies like BP are turning to projects like ours for sustainable, stable gas that will supply a clean energy mix.”

“We look forward to working with BPGM to deliver Canadian natural gas from one of the lowest carbon footprint LNG facilities in the world, and help advance the climate goals of growing economies as they phase away from coal, lower their emissions, and meet net-zero targets,” Bedi added. 

Pacific Oil & Gas is a member of the Singapore-based RGE group of companies. Founded by Sukanto Tanoto, RGE manages a group of resource-based manufacturing companies with global operations.

“The use of renewable energy for e-drive power places Woodfibre – and Squamish – at the forefront of the world’s clean energy transition,” said Ron Bailey, president of Woodfibre LNG.

Woodfibre LNG project has been located approx. 7 km west-southwest of Squamish, British Columbia. It involves the construction and operation of a LNG export facility on the previous Woodfibre pulp mill site. The facility would have a storage capacity of 250,000 m3 and would produce approximately 2.1 (MTPA) of LNG.