Enbridge Invests $1.5 Billion in Woodfibre LNG Plant

New liquefaction facility planned for Squamish, British Columbia, is expected online in 2027.

McDermott Woodfibre Design
Woodfibre LNG schematic design.
SOURCE: Handout/McDermott International Ltd.

Midstream giant Enbridge will partner with Pacific Energy Corp. on the construction and operation of the $4 billion Woodfibre LNG project in British Columbia. Enbridge said it would receive a 30% ownership stake in the project for $1.5 billion. The plant is a 2.1 million mtpa facility underpinned by two offtake agreements with BP for 15 years, representing 70% of the capacity. The project has yet to be sanctioned, but it is expected to begin service in 2027.

The Enbridge investment will contribute toward the construction of FortisBC Energy’s Eagle Mountain-to-Woodfibre pipeline, which will connect the facility to Enbridge’s T-South natural gas transmission system.

McDermott International has been awarded an engineering, procurement, fabrication, and construction contract related to the Woodfibre project.

Pacific Energy and Enbridge will each make pro rata contributions during construction through a combination of asset level financing and equity investments. In exchange for its capital contribution, Enbridge will receive a preferred equity interest that provides predictable future cash flows. The partners will jointly participate in the project’s execution and governance of ongoing operations, while Pacific Energy retains responsibility for daily operations.

Enbridge President and CEO Al Monaco said the investment aligns with its existing plans for utilizing pipeline infrastructure to support LNG exports and its transition to net-zero greenhouse-gas emissions by 2050. Enbridge is planning a 300 MMcf/D expansion to the T-South section of its BC pipeline system that could feed the project.

“This investment is a natural extension of our BC Pipeline System, which will supply gas to the facility under a long-term transportation agreement, and supports further expansion of the BC pipeline system,” said Monaco. “Export fundamentals for Western Canadian LNG to Asian markets are strong and the Woodfibre facility provides a cost-competitive source of supply.”

Woodfibre awarded a design contract to Siemens Energy Canada in mid-July for an all-electric design that would use hydroelectric power. The Squamish Nation has also been tapped as a “project partner and environmental regulator” on the project.

Woodfibre LNG will use electric motor drives powered by renewable hydroelectric power, making this one of the lowest-emission LNG export facilities in the world, according to the company. The project is the only one in Canada with a nontreaty Indigenous-issued environmental assessment certificate, the first project approved under the Government of Canada’s “Five Principles” for environmental assessment. It has received all major federal, provincial, and First Nations approvals.

“This partnership is a milestone for the Woodfibre LNG project,” said Ratnesh Bedi, president of Pacific Energy. “And it further accelerates Canada’s ability to be a meaningful player in the global energy transition with the production of the world’s lowest-carbon LNG.”