VANCOUVER, B.C. – Pacific Oil & Gas Limited has announced that its wholly-owned subsidiary, Woodfibre LNG Export, has signed a binding LNG Sales and Purchase Agreement with BP Gas Marketing Limited.
This agreement is for the delivery of liquefied natural gas from the Woodfibre LNG export facility in Squamish.
As part of the agreement, BP will receive 0.75 million tonnes per annum of LNG over 15 years on a free on board basis, with first delivery expected in 2023.
At the same time, BP Canada and Pacific Oil & Gas are working on an agreement for BP Canada to provide gas transportation and balancing services ensuring a reliable delivery of gas to the Woodfibre LNG export facility over the 15-year term.
The Woodfibre LNG project is located approximately 7 km west-southwest of Squamish.
It involves the construction and operation of an LNG export facility by Woodfibre LNG Limited on the previous Woodfibre pulp mill site, which would have a storage capacity of 250,000 m3 and would produce approximately 2.1 million tonnes per annum of LNG.