Woodfibre LNG, the mid-scale project near the town of Squamish in British Columbia, has issued a notice to proceed to US engineering contractor McDermott to move the projects towards major construction commencement in 2023.
To be built on the site of a former pulp mill some 7 kilometres from Squamish, Woodfibre LNG is the second project in BC to start the construction phase following the LNG Canada project under way at Kitimat.
The Woodfibre project comprises a single liquefaction Train with 2.1 million tonnes per annum of LNG production and storage capacity of 250,000 cubic metres. The venture is owned by Pacific Energy Corp., a subsidiary of founder Sukanto Tanoto’s Royal Golden Eagle Group.
“When shipped to Asia where it will replace coal-fired electricity, the LNG produced at the Woodfibre facility will reduce 3.5 million tonnes of CO2 emissions per year,” the project company said.
Completion slated for 2027
Through this EPFC contract McDermott has been able to advance detailed engineering and construction schedules. Woodfibre LNG expects to reach substantial completion in 2027, when the first cargo will be shipped.
McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG's Impact Benefit Agreements with the Squamish First Nation of the area. It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction.