(bp, 5.Sep.2023) — bp has entered its third long-term liquefied natural gas (LNG) offtake contract from the Woodfibre LNG facility based in British Columbia, Canada. With the additional contract to offtake 0.45 million tonnes of LNG per year (mtpa) for 15 years on a free on board (FOB) basis, all of the LNG production from the Woodfibre LNG export facility is now committed for sale to bp, with firm offtake totalling 1.95 mtpa and the remainder on a flexible offtake basis.
Highlights:
- bp enters third long-term liquefied natural gas (LNG) offtake contract from Woodfibre’s British Columbia LNG facility.
- Under the sale agreement, all LNG output from the Woodfibre LNG export facility is now committed for sale to bp.
- Canadian LNG supply source further expands bp’s LNG portfolio, at a time when LNG plays a key role supporting the energy transition and energy security.
- The Woodfibre LNG facility aims to be the world’s first net-zero LNG facility by 2027, utilizing hydro-powered, electric-driven compression.
bp continues to look for opportunities across the gas value chain, as it sees LNG as an essential part of the energy transition and its own pivot to becoming an integrated energy company. As bp works towards building an LNG portfolio of 30 million tonnes by 2030, the additional Canadian west coast supply source expands bp’s flexible, high-quality LNG portfolio and further enhances the company’s capability to meet the growing global natural gas demand.
In addition to securing LNG offtake rights from the project, bp will provide safe and reliable transportation of gas to the Woodfibre LNG export facility during the 15-year contact term.
Jonathan Shepard, VP global LNG trading and origination at bp, said: “As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow and this additional Canadian supply source will further enhance bp’s supply positions in the Pacific region. We look forward to continuing our close collaboration with Woodfibre LNG.”
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