Reuters are reporting that a construction decision on a small scale LNG export terminal on British Columbia’s coast has been pushed back to 2018, as Woodfibre LNG works to make its US$1.3 billion project competitive in the face of weak prices.
The Vancouver-based company said previously it would start construction on the 2.1 million tpy terminal this year.
Woodfibre LNG is a relatively small project, but has long been touted as the best hope for seaborne exports of Canadian natural gas. While dozens of projects have been proposed for British Columbia’s coast, none have moved to construction.
Siddon added that a dual front-end engineering process by KBR Inc and JGC Corp was complete, and that the company would be moving to the next stage of engineering, procurement and construction (EPC) with Houston-based KBR.
A construction decision would come once an EPC deal is in place, with the build taking two to three years.
Malaysia’s Petronas earlier this year scrapped its US$29 billion export terminal in a major blow to Canada’s LNG ambitions. China’s CNOOC Ltd has also backed away from a planned terminal.
Woodfibre is seeking help from both provincial and federal governments to give it a competitive advantage.
The project is competing with a swath of LNG terminals operating and under construction on the East Coast of the United States. This as global LNG prices have slumped as new terminals have come into operation worldwide.
Woodfibre LNG has an offtake deal with Guangzhou Gas Group covering nearly half its planned exports.
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