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ENB Pub Note: The update from LGNPrime.com below regarding the Woodfibre LNG project raises some interesting questions, and so I added the total context about the Woodfibre LNG export facility.
Located seven kilometers southwest of Squamish, British Columbia, the Woodfibre LNG export facility is poised to reshape Canada’s energy landscape while setting a global benchmark for sustainable liquefied natural gas (LNG) production. With a production capacity of approximately 2.1 million tonnes per annum (mtpa) and a 250,000 cubic meter storage capacity, this innovative project is designed to supply cleaner energy to global markets, particularly in Asia, where it aims to displace higher-emission fuels like coal. As construction progresses toward a 2027 operational start, the facility’s unique features and environmental commitments promise significant impacts on both Canada’s energy mix and the global transition to lower-carbon energy systems.
A Strategic Addition to Canada’s Energy Portfolio
Canada is a major natural gas producer, with significant reserves in regions like the Montney formation in British Columbia. The Woodfibre LNG facility, developed by Woodfibre LNG Limited Partnership (70% owned by Pacific Energy Corporation and 30% by Enbridge Inc.), leverages these resources to bolster Canada’s role as a global energy supplier. The project connects to Enbridge’s T-South transmission system via an expanded FortisBC Eagle Mountain pipeline, ensuring efficient delivery of natural gas to the facility for liquefaction and export.
The facility’s 2.1 mtpa capacity is modest compared to larger projects like LNG Canada (14 mtpa, with potential to double), but its strategic location on the Pacific Coast provides a competitive edge for exporting to Asia, where demand for cleaner energy is growing. By enabling Canada to export LNG, Woodfibre diversifies the country’s energy export portfolio, traditionally dominated by oil and pipeline gas to the United States. This shift strengthens Canada’s position in the global energy market, particularly as LNG demand is projected to grow, driven by Asia’s transition away from coal.
Pioneering Sustainability in LNG Production
What sets Woodfibre LNG apart is its commitment to being the world’s first net-zero LNG export facility, a goal it aims to achieve during both construction and operations by 2027—23 years ahead of British Columbia’s regulatory requirement for net-zero emissions by 2030. The facility’s design incorporates several cutting-edge features to minimize its environmental footprint:
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Renewable Hydroelectric Power: Unlike conventional LNG facilities that rely on gas-powered turbines, Woodfibre uses electric compressors powered by BC Hydro’s renewable hydroelectricity. This reduces stationary combustion emissions by a factor of 14 compared to traditional LNG plants, achieving a carbon intensity of just 0.04 tonnes of CO2 equivalent per tonne of LNG (tCO2e/tLNG), well below British Columbia’s benchmark of 0.16 tCO2e/tLNG.
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Advanced Emissions Reduction Technologies: The facility employs systems to re-liquefy boil-off gas, preventing over 11,000 tonnes of CO2e emissions annually, and uses air-cooling systems instead of seawater cooling, reducing energy use and environmental impact by an additional 3,000 tonnes of CO2e per year.
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Nature-Based Carbon Offsets: To neutralize residual emissions, Woodfibre partners with First Nations-affiliated projects to invest in forest conservation, ensuring carbon sequestration through natural ecosystems. These offsets are validated by Brightspot Climate to meet British Columbia’s stringent standards.
These measures result in an emissions profile that is just 0.1% of British Columbia’s total annual emissions, with annual facility emissions of approximately 68,000 tonnes of CO2e—significantly lower than other industrial emitters in the province. By comparison, the largest single industrial emitter in British Columbia produces emissions 15 times higher.
Global Impact: Displacing Coal and Reducing Emissions
The Woodfibre LNG facility is designed to play a pivotal role in the global energy transition by supplying LNG to markets seeking to phase out coal. Research commissioned by Woodfibre and supported by studies from the University of British Columbia, University of Calgary, and Stanford University indicates that replacing coal-fired power with LNG from Woodfibre could reduce greenhouse gas emissions by 34–62% per kilowatt-hour of electricity generated, with Woodfibre’s own estimates citing a 45% reduction. This translates to an annual avoidance of 3.5 million tonnes of CO2e globally, equivalent to 5% of British Columbia’s total emissions.
The International Energy Agency’s 2019 Tracking Power report underscores natural gas’s role as a “flexible transition fuel” in achieving Paris Agreement targets, particularly in scenarios limiting global warming to well below 2°C. By supplying LNG to Asia through long-term offtake agreements with BP Gas Marketing Limited for 100% of its capacity, Woodfibre directly supports this transition, offering a cleaner alternative to coal and fuel oil in power generation and industrial applications.
Local and Indigenous Partnerships
Situated within the traditional territories of the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation) and Səl̓ílwətaʔ/Selilwitulh (Tsleil-Waututh Nation), Woodfibre LNG has prioritized collaboration with Indigenous communities. The project is the first in Canada to recognize the Squamish Nation as an environmental regulator, alongside federal and provincial governments. This partnership led to significant design changes, such as relocating the facility from floating to land-based and adopting air-cooling technology to minimize marine and air quality impacts, reflecting the Squamish Nation’s environmental priorities.
The project also emphasizes economic reconciliation, prioritizing hiring for Squamish Nation members, other Indigenous peoples, and local residents. At peak construction, it will employ approximately 800 workers, with 100 long-term operations roles once operational. Additionally, Woodfibre’s Community Partnership Program supports local non-profits, with $151,000 donated to 42 Squamish organizations in 2023 alone.
Challenges and Criticisms
Despite its environmental and economic promises, the Woodfibre LNG project has faced challenges. Rising costs, from an initial estimate of $1.2 billion in 2015 to $6.8 billion by 2023, have raised concerns about its financial viability compared to larger U.S. Gulf Coast LNG projects. Critics, including the Council of Canadians and some Squamish Nation members, have expressed opposition, citing potential environmental impacts from upstream gas extraction and flaring, which can release toxic gases. A Pembina Institute study estimated that the facility and its upstream operations could emit 0.81 million tonnes of carbon pollution annually and require 0.5 million cubic meters of freshwater yearly, raising concerns about cumulative environmental effects.
Additionally, local groups like My Sea to Sky have mobilized against the project, and studies are ongoing to assess potential health impacts on nearby residents. These concerns highlight the tension between economic development and environmental stewardship, particularly in the ecologically sensitive Howe Sound, a UNESCO Biosphere Reserve.
Impact on Canada’s Energy Mix
The Woodfibre LNG facility enhances Canada’s energy mix by expanding its capacity to export natural gas as LNG, complementing its oil and renewable energy sectors. While natural gas accounted for about 7% of Canada’s total energy consumption in 2022, LNG exports represent a growing segment, particularly as global demand shifts toward lower-carbon fuels. By leveraging British Columbia’s low-carbon gas resources and renewable hydroelectricity, Woodfibre strengthens Canada’s ability to supply cleaner energy globally, aligning with national climate goals and the Paris Agreement.
Moreover, the project’s net-zero commitment sets a precedent for future energy developments in Canada, demonstrating that industrial projects can align with stringent environmental standards. Its use of hydroelectricity reduces reliance on fossil fuels for LNG production, indirectly supporting Canada’s renewable energy sector. However, the facility’s relatively small scale means its direct contribution to Canada’s energy mix is limited compared to larger projects like LNG Canada.
Conclusion
The Woodfibre LNG export facility represents a significant step toward sustainable energy production and export in Canada. By prioritizing net-zero emissions, leveraging renewable hydroelectricity, and fostering Indigenous partnerships, it sets a new standard for the global LNG industry. Its potential to displace coal in Asia offers substantial environmental benefits, while its economic contributions support local communities and Canada’s energy export ambitions. However, challenges such as rising costs and environmental concerns underscore the need for continued scrutiny and innovation. As Woodfibre moves toward its 2027 operational target, it stands as a model for balancing energy security, economic growth, and environmental responsibility in the global transition to a low-carbon future.
Sources: Information in this article is drawn from various web sources, including Woodfibre LNG’s official site, Enbridge, Pacific Energy, and reports from the Pembina Institute, Global Energy Monitor, and the International Energy Agency. Posts on X also highlight recent sentiment about the project’s net-zero ambitions.
Source LNGPrime.com
The pipe rack modules, transported by the heavy cargo vessel BigLift Baffin, are the first large-scale modular components to arrive at the site for installation.
Moreover, they are fully completed structural steel frameworks that house and support piping carrying liquefied natural gas from the facility’s liquefaction unit to the floating storage tanks and loading facility.
These modules were built and shipped by China’s Qingdao McDermott Wuchuan (QMW), a joint venture consisting of McDermott and China State Shipbuilding Corporation.
QMW will build 19 modules, some weighing in excess of 10,000 metric tonnes, for Woodfibre LNG.Woodfibre LNG said that the modules will arrive at its site throughout the rest of 2025 and into 2026. They range in size from a 126-tonne pipe rack to an almost 11,000-tonne liquefaction unit that covers roughly the same amount of space as a football field.
Also, the modules will now be offloaded at the Woodfibre LNG facility through the project’s newly completed marine offloading facility, a purpose-built offload dock designed to handle the delivery of large modules throughout the construction phase.
Following offloading, the modules will be moved into place and mounted on their permanent foundations.
“This is a huge milestone for the Woodfibre LNG project as it’s the start of our facility going vertical – where people will really start to see the facility take shape,” said Luke Schauerte, CEO of Woodfibre LNG.
“But it’s also bigger than that. These first modules are a significant step forward in diversifying Canada’s energy export market, providing global customers with responsibly produced energy and ensuring Canadians receive maximum benefit for their resources,” he said.
While construction on-site began in September 2023, the project has adopted a modular construction approach to enhance efficiency and meet its construction timeline.
The facility, which will have a capacity of 2.1 mtpa and storage of about 250,000 cbm, is expected to be completed in 2027.
In November 2021, Woodfibre LNG awarded the engineering, procurement, fabrication, and construction (EPFC) contract to McDermott.
After that, the LNG terminal developer issued a notice to proceed to McDermott in April 2022 to start work on its LNG terminal, while QMW started building the first module for Woodfibre LNG in 2023.
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