Pacific Oil & Gas Limited, parent company of Woodfibre LNG Export, announced it has signed a binding sales and purchase agreement with BP Gas Marketing Limited, for the delivery of liquefied natural gas from its Woodfibre LNG export facility in Squamish.
“We are honoured to have BP as a foundation customer of our Woodfibre LNG project,” said Ratnesh Bedi, PO&G President in a joint news release from Pacific Oil and Gas, and Woodfibre LNG. “We look forward to providing BP with a consistent supply of flexible Canadian LNG that can displace more carbon-intensive fuels.”
Under the terms of the agreement, BP will receive 0.75 million tonnes per year of liquified natural gas over 15 years on a free on board basis, with first delivery expected in 2023.
“Woodfibre LNG is a tremendous opportunity for British Columbia and Canada to get clean natural gas to growing markets in Asia,” said David Keane, president of Woodfibre LNG in the release.
“PO&G has made significant investments in Canadian natural gas because they are confident in the future of LNG in Canada.”
BP Canada Energy Group ULC and Woodfire's parent company are also working on an agreement for BP Canada to provide gas transportation and balancing services.
This would ensure "a reliable delivery of gas to the Woodfibre LNG export facility over the 15-year term," according to the release.
— Squamish Chief