Enbridge and Pacific Energy to invest in Woodfibre LNG project

Enbridge Inc. and Pacific Energy Corp. formed a partnership agreement to invest in the construction and operation of the C$5.1 billion ($3.98 billion) Woodfibre LNG project in British Columbia.

The Woodfibre LNG project is a 2.1 million-metric-ton-per-year export facility being built near Squamish, underpinned by two offtake agreements with BP Gas Marketing Ltd. for 15 years representing 70% of the capacity. The project is expected to begin service in 2027.

The Calgary-based Enbridge will invest in a 30% ownership stake in the liquefied natural gas project, with Singapore-based Pacific Energy retaining the rest. Enbridge didn’t say how much it would pay for the stake.

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