Page 11 - NorthAmOil Week 26

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BP lines up Woodfibre supplies
BRITISH COLUMBIA
BP has signed on to take LNG from the Wood- bre LNG plant, in Canada’s British Columbia. Paci c Oil & Gas announced the binding sale and purchase agreement (SPA) with BP Gas Marketing last week, describing the o aker as a foundation customer.
BP will take 750,000 tonnes per year (tpy) of LNG from the Wood bre LNG plant, in Squa- mish, for 15 years. Deliveries are due to start in 2023.
In addition, BP Canada Energy Group is working with Pacific on the provision of gas transportation and balancing services. is is intended to ensure the reliable delivery of gas to Wood bre LNG for the 15 years. Wood bre, in September 2018, signed a heads of agreement (HoA) with CNOOC Gas & Power Trading for the supply of a similar amount, also starting in 2023, for 13 years.
“We are honoured to have BP as a founda- tion customer of our Wood bre LNG project,” said Paci c’s president, Ratnesh Bedi. “BP is a global LNG portfolio player and a pioneer in the international LNG business. We look forward to providing BP with a consistent supply of exi- ble Canadian LNG that can displace more car- bon-intensive fuels.”
e COO of BP’s global LNG business, Jonty Shepard, noted the importance of securing a low-carbon future, in addition to accessing
more energy. “BP is meeting this dual challenge by securing new and innovative LNG solutions to develop our LNG portfolio. is SPA further broadens our supplier base and adds to BP’s ability to o er cleaner energy to our customers around the world.”
The Woodfibre LNG plant will produce around 2.1mn tpy of LNG from a site that used to be a pulp mill.
“Wood bre LNG is a tremendous opportu- nity for [BC] and Canada to get clean natural gas to growing markets in Asia,” said Wood - bre’s president, David Keane. Paci c “has made signi cant investments in Canadian natural gas because they are con dent in the future of LNG in Canada.”
e Squamish Nation Council approved the Wood bre LNG plan in November 2018. Notice to proceed is targeted for this summer, the com- pany has said, with construction planned to start this year.
In related news, the BC Oil and Gas Commis- sion approved the facility permit for the liquefac- tion plant on July 2.
BP has struck a number of deals in recent years to lock in future LNG supplies. For instance, it has agreed to take the full volume from Mozambique’s Coral South oating LNG (FLNG) project and its own operated Tortue LNG, in Senegal and Mauritania.™
The BC Oil and Gas Commission approved the facility permit for the liquefaction plant on July 2.
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