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Woodfibre LNG ready to begin construction in 2019

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LNG Industry,

According to Reuters, Woodfibre LNG, a small LNG project north of Vancouver, is set to enter its construction phase in 1Q19. This move adds momentum to Canada’s efforts to become a notable player in the LNG trade market.

The Woodfibre project, backed by the Indonesian RGE Group, is a relatively small endeavor with a capacity of 2.1 million tpy. The project was initially approved in 2016 but it was then delayed as the company dealt with various issues. This approval makes it the second Canadian project to be given the green light since the recent sanctioning of the large scale LNG Canada project.

Woodfibre still needs to finalise its benefit agreement with the local Squamish Nation. The agreement has reportedly been initialed but still needs to be formally signed by the council. The project is also still waiting for a decision on the import tariffs on the fabricated steel components needed to construct the LNG liquefaction units.

Once these last details have fallen into place and final construction approval is given, the project should be completed in approximately five years. This would mean LNG exports could commence as early as 2024.

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