‘World’s first net-zero LNG export facility’ shaping up in Canada as $5.1B project forges ahead

Woodfibre Management, a privately held Canadian company based in Vancouver, is moving forward with the construction works at its operated multimillion-dollar liquefied natural gas (LNG) export project along the southwest coast of British Columbia, Canada.

As construction continues to advance at the Woodfibre LNG site, including work on foundations for the LNG processing equipment and modules that are expected to begin arriving at the site in 2025, the operator underlines that the current work includes backfilling and grading of the site, concrete pouring, installation of rock anchors, and onshore casing advancement for the floating storage tank mooring structures.

The firm explains that the marine offloading facility is nearing completion in preparation for module arrival later in the year, while all regular erosion, sediment control measures, and environmental best practices remain in place. According to the Canadian player, non-local project workers are housed on the floatel, which arrived last year, and transportation to and from the floatel is from the lower mainland (Vancouver).

Furthermore, after the closure of the marine timing window of least risk on January 31, 2025, all in-water works and nearshore blasting have ceased at the site. As the songbird breeding window has begun, bird mitigations have been installed to avoid harm to migratory birds.

In addition, exclusion fencing has been installed in preparation for amphibian emergence and breeding in spring to keep amphibians away from high-traffic areas while being salvaged and relocated to a suitable breeding site.

Moreover, the company emphasizes that this project has a noise exemption variance permit in place from the District of Squamish as some works are required to go on past noise bylaw hours, with night work set to continue over the coming months, including formwork, concrete pours, and site maintenance, such as erosion and sediment control.

Currently, noise monitoring at Britannia and Squamish harbor keeps going forward, and air and light monitoring is expected to be conducted in 2025. The operator highlights that Woodfibre LNG is set to become “the world’s first net-zero LNG export facility.”

A modular construction approach has been adopted; thus, the fabrication of key LNG modules is underway overseas. The construction on-site started in 2023 when Qingdao McDermott Wuchuan (QMW) fabrication yard, a joint venture of McDermott and China State Shipbuilding Corporation (CSSC), began building the first of 19 modules for the project, slated for delivery in the third quarter of 2025.

These first modules, a series of pipe rack modules that connect the liquefaction and loading facilities, which are scheduled to arrive this summer, mark the beginning of a series of module deliveries that will continue throughout the remainder of 2025 and into early 2026.

“This method has been shown to improve timelines, increase efficiency, and enhance quality control in large-scale projects, all while minimizing environmental impact,” underscored Woodfibre LNG, which believes this will help position the facility to produce approximately 2.1 million tons of LNG annually once operational.

The project, underpinned by three 15-year offtake agreements with BP, was estimated to cost about $1.6 billion before a revision in the summer of 2022 to $5.1 billion. The development entails the construction of a liquefaction train, a floating LNG storage and offloading unit, an air-cooling system, and marine docking facilities for LNG carriers.

This LNG undertaking is owned by Woodfibre LNG partnership, with 70% held by Pacific Energy Corporation and the remaining 30% by Enbridge.