On 4 November 2016 Pacific Oil & Gas, which forms part of the Royal Golden Eagle (RGE) group of companies founded by Indonesian entrepreneur Sukanto Tanoto, confirmed that the necessary funds of US$ 1.6 Billion necessary to proceed with the Canadian-based Woodfibre LNG project have been authorized.
Woodfibre LNG Limited is a small to mid-scale natural gas liquefaction facility, which will be located on the Howe Sound shores in the Squamish district of British Columbia (BC). The facility will receive its natural gas from a FortisBC natural gas pipeline, and will be powered by electricity from BC Hydro.
The facility is one of the smallest Liquefied Natural Gas (LNG) plants proposed for the British Columbian coast, licenced to export up to only 2.1 million tonnes of gas per year. However, because it will be connected to the BC Hydro power grid, it will be one of the lowest-emitting LNG projects there.
The Premier of British Columbia, Christy Clark, said they were delighted to announce that LNG will finally become a reality in BC, “This marks the beginning of a tremendous opportunity for BC to play a significant role in the global fight against climate change, using the world’s cleanest LNG to help countries transition away from coal and oil.”
Woodfibre LNG will be built during a time when the price of natural gas is low, which could mean that the facility could have an economically difficult start. To help ensure its success, the British Columbian government has decided to “offer a competitive electricity rate” for companies using the more expensive but cleaner electricity-powered liquefaction methods.
During the construction of Woodfibre LNG Limited 650 jobs will be created, as well as 100 operational jobs once the facility is running. Work on the facility will start imminently and is expected to be completed by 2020. Exporting gas to Asia is expected to commence in the same year.
Woodfibre LNG still requires a certificate from the Oil and Gas Commission, which is hoped to be received by late 2017.