Woodfibre LNG Ltd has released a statement claiming that Woodfibre LNG Export Pte Ltd – its Singapore-based affiliate – has signed a Heads of Agreement (HoA) with Guangzhou Gas Group Co. Ltd regarding the potential offtake of 1 million tpy of LNG for a 25-year period, commencing in 2020. The Premier of British Columbia (B.C.), Canada, Christy Clark, and the Secretary of the Guangdong Provincial Party Committee, Mr Hu Chun Hua, witnessed the signing. The agreement includes a potential investment of up to 10% of the equity of Woodfibre LNG Ltd by Guangzhou Gas Group.
The HoA will help to provide a stable, long-term natural gas supply to meet the increasing demand for clean energy in Guangzhou City, China. The Woodfibre LNG project, which is under development in Squamish, B.C., will provide the LNG. The project is expected to commence production in 2020, and will have a total capacity of 2.1 million tpy.
The Country Manager and Vice President Corporate Affairs, Woodfibre LNG Ltd, Byng Giraud, said: “The HoA with Guangzhou Gas Group shows there is an appetite in Asia for made in B.C. LNG.
“This preliminary agreement gets us one step closer to making the Woodfibre LNG project a reality, and bringing much-needed jobs and other economic benefits to Squamish and the surrounding area.”
The HoA follows a Memorandum of Understanding (MoU) between Woodfibre LNG Export and Guangzhou Gas Group regarding the potential LNG offtake agreement, which was signed in September 2014.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/regasification/10052016/woodfibre-and-guangzhou-gas-group-sign-lng-agreement-2413/