Ottawa invests C$200 million to expand Woodfibre LNG; capacity up 24%, operations targeted for late 2027

Federal Energy and Natural Resources Minister Tim Hodgson announced on Friday (November 13) at the Port of Vancouver that the federal government will invest C$200 million (about US$140 million) to expand the Woodfibre LNG project under construction near Squamish, British Columbia. The funding will pay for cooling-system upgrades and the commissioning and mooring of floating storage tanks, raising annual capacity from 2.1 million tonnes to 2.5-2.6 million tonnes — an increase of up to 24%.

All output already sold to BP; start-up targeted for late 2027

Woodfibre LNG is owned by Singapore-based Pacific Energy (70%) and Canada's Enbridge (30%). Its original 2.1 million tonnes of annual output is fully contracted to BP under three 15-year agreements. The facility is under construction and targeted to begin operations in late 2027; the owners are also studying a second phase. Powered by British Columbia hydroelectricity, the project is billed as the world's first net-zero LNG facility when operations begin.

Built with the Squamish Nation; a first for Indigenous-led assessment

Woodfibre LNG is being advanced in collaboration with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation) and is the first major industrial project in Canadian history approved through a non-treaty, Indigenous-led environmental assessment, which set 25 legally binding conditions. Canada approved a 40-year natural gas export licence for the project in 2017. B.C. Premier-Designate Lorne Doerkson, Woodfibre LNG CEO Luke Schauerte and Squamish Nation Chairperson Sxwíxwtn Wilson Williams attended Friday's announcement.

Sources: Natural Resources Canada; Reuters.