BP Enters LNG Offtake Contract with Woodfibre’s British Columbia LNG Facility
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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 totaling 1.95 mtpa and the remainder on a flexible offtake basis.
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.
“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.” said Jonathan Shepard, VP global LNG trading and origination, bp.
“Canada, and particularly British Columbia, is uniquely positioned to take the lead on exporting lower-carbon LNG overseas as part of the global energy transition. Today’s announcement demonstrates there is demand for lower-carbon energy today and well into the future,” said Christine Kennedy, president of Woodfibre LNG.
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.
bp is an energy company that explores and produces oil and natural gas, refines, markets, and supplies petroleum products, as well as generates solar energy, and manufactures and markets chemicals such as terephthalic acid, acetic acid, acrylonitrile, ethylene, and polyethylene. BP serves customers worldwide.
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