UK-based energy major BP has entered its third long-term liquefied natural gas (LNG) offtake contract from the Woodfibre LNG facility based in British Columbia, Canada.
The contract involves the offtake of 0.45 million tons of LNG per year (mtpa) for 15 years on a free-on-board (FOB) basis, and according to the energy major, 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.
In addition to securing LNG offtake rights, BP said it will provide safe and reliable transportation of gas to the export facility during the contract term.
Jonathan Shepard, VP of Global LNG trading and origination at BP, stated: “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.”
BP emphasized that it 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.
To remind, the Woodfibre LNG is a 2.1 million mtpa LNG export facility with 250,000 cubic meters of floating storage capacity. It is being developed by Pacific Energy and Enbridge and is scheduled for delivery in the third quarter of 2025