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|China's CNOOC to Purchase LNG from Canada's Woodfibre LNG Project|
|= It signs deal to purchase 0.75 mtpa of LNG over 13 years =|
China's CNOOC has decided to purchase LNG from the Woodfibre LNG project. It signed, through its subsidiary CNOOC Gas & Power, a Heads of Agreement (HOA) with Woodfibre LNG Export to procure annual 750,000 mt of LNG over the course of 13 years from 2023.|
The news was announced by Pacific Oil & Gas, the parent company of Woodfibre LNG. The Company is constructing an LNG production/export terminal with a production capacity of 2.1 mtpa in Squamish, British Columbia, western Canada.
According to the government of British Columbia, Woodfibre LNG agreed with China's Guangzhou Gas in 2014 to supply 1 mtpa of LNG over 25 years. With this time's agreement with CNOOC, the project has succeeded in securing Chinese buyers of about 80% of LNG to be produced.
If things go smoothly, a final investment decision will be made before this year end. Shell-operated LNG Canada project (production capacity: 26 mtpa) and Pieridae Energy's Goldboro LNG project (10 mtpa) are also planning FID within this year, but the small-scale Woodfibre LNG project may be the first Canada-based LNG export project.
|last modified : Wed 10 Oct, 2018 [10:03]|