Canadian pipeline and energy company Enbridge has completed the transaction relating to its partnership agreement with Pacific Energy to jointly invest in the Woodfibre LNG project.
The companies announced their intention to jointly invest in the construction and operation of the project earlier this year.
With the completed transaction, Enbridge now has a 30% ownership stake in the Woodfibre LNG project while Pacific Energy retains the remaining 70% stake in the project.
Pacific Energy and Enbridge will each make pro-rata contributions during construction through a combination of expected asset-level financing and equity investments.
In exchange for its capital contribution, Enbridge will receive a preferred equity interest that provides predictable future cash flows. The partners will jointly participate in the project’s execution and governance of ongoing operations, while Pacific Energy retains responsibility for daily operations.
The partners said that preliminary construction activities, including site preparation, are underway. The project remains on track for its targeted in-service date of Q4 2027.
The Woodfibre LNG project is a 2.1 million tonnes per annum (mtpa) LNG export facility with 250,000 cubic metres of floating storage capacity.
The project is being built near Squamish, British Columbia. It is underpinned by two long-term offtake agreements with BP Gas Marketing for 15 years representing 70% of the capacity, with additional commitments in development for up to 90%.
Construction of Woodfibre LNG will be undertaken through an engineering, procurement, fabrication and construction (EPFC) contract with McDermott International.