Woodfibre set to build
Canada's first LNG export project
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[November 05, 2016]
By Nia Williams
CALGARY,
Alberta, Nov 4 (Reuters) - Woodfibre LNG will start building British
Columbia's first liquefied natural gas processing and export terminal in
2017, it said on Friday, a project that would grant Canada a
long-awaited opportunity to enter the global market.
The facility near Squamish, north of Vancouver, will export 2.1 million
tonnes a year once it is operational in 2020, according to a company
statement.
However, Woodfibre is relatively small compared to other proposed LNG
projects in the province and will have little impact on weak Canadian
natural gas prices, said Samir Kayande, a director at research group RS
Energy.
More than a dozen LNG projects have been proposed for British Columbia,
but the global slump in energy prices has undermined their feasibility
and delayed investment.
In September, Canada approved a proposed C$36 billion,
12-million-tonne-a-year LNG project by Petroliam Nasional Berhad. But
Petronas, as the Malaysian state-owned oil company is known, has yet to
give the final go-ahead, and Canadian aboriginal and environmental
groups have filed lawsuits to stop it.
Privately held Woodfibre said its Singaporean parent authorized funds
for the facility after British Columbia offered a competitive
electricity rate for LNG projects.
Woodfibre, based in Vancouver, is a subsidiary of Pacific Oil & Gas Ltd,
which is part of the Singapore-based RGE Group of companies.
Byng Giraud, country manager for Woodfibre, said in a statement the
cheaper rates were what allowed the "go forward" decision to happen. The
plant will be powered using electricity rather than natural gas.
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The British Columbia government, which is keen to develop an LNG
industry, welcomed the green light for the C$1.6 billion project and
said it would be one of the largest private sector investments in the
southern part of the province.
Gas for the facility will come from northeastern British Columbia via
Spectra Energy and Fortis Inc-owned pipelines.
Environmental group the Pembina Institute warned the project would make
it harder for British Columbia to meet its 2050 carbon emissions
targets.
Squamish Mayor Patricia Heintzman said the announcement was somewhat
"jumping the gun" as there are 25 environmental conditions put forward
by the Squamish First Nations still being worked out.
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Squamish Chief Ian Campbell could not be immediately reached for
comment.
Woodfibre has legally committed to and will continue to work to meet
those obligations, said company spokeswoman Jennifer Siddon. (Reporting
by Nia Williams in Calgary; Additional reporting by Catherine Ngai in
Vancouver; Editing by James Dalgleish)
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