Canada’s $5.1 billion gas project embarks on blasting ops to make room for world’s first net zero LNG export terminal

A liquefied natural gas (LNG) export project, which is operated by Woodfibre Management, a privately held Canadian company based in Vancouver, has kicked off blasting activities to lay the groundwork for the future installation of the planned 2.1 million-tonne-per-year export terminal with 250,000 m3 of floating storage capacity being built near Squamish, British Columbia (B.C.). This is said to be the world’s first LNG export facility to commit to achieving net zero emissions by 2027.

With a compliance order from the B.C. Environmental Assessment Office in hand, Woodfibre LNG was all set to use its floating workforce accommodation, also known as floatel, for non-local workforce at the site under the terms of the amended environmental assessment certificate from November 2023, which authorized the use of such a temporary floating worker housing setup for up to 650 employees outside the community of Squamish.

The construction phase officially began in August 2023 when Qingdao McDermott Wuchuan (QMW) fabrication yard, a joint venture of McDermott and China State Shipbuilding Corporation (CSSC), started building the first out of 18 modules for the project. The delivery of all modules, totaling 34,359 MT, is slated for the third quarter of 2025.

During the construction of the LNG facility, which is being built on the site of the former Woodfibre pulp mill site about 7 kilometers southwest of Squamish on the traditional and unceded territory of the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation), Woodfibre LNG expects a peak workforce of more than 800 individuals, with over 100 long-term operating positions at the terminal once construction is complete.

The project, entailing the construction of a liquefaction train, a floating LNG storage and offloading unit, an air-cooling system, and marine docking facilities for LNG carriers, is owned by Woodfibre LNG Limited partnership, with 70% held by Pacific Energy Corporation and the remaining 30% by Enbridge. The LNG development project was expected to cost about $1.6 billion before the figure was revised in the summer of 2022 to $5.1 billion. 

Underpinned by three 15-year offtake agreements with BP, Woodfibre LNG has started blasting the project site slopeside/rock wall to create space for the installation of the future permanent export terminal. In addition, concrete pouring is in progress for pipe-rack foundations while all regular erosion, sediment control measures, and environmental best practices remain in place.

The floatel, which is in place at the project site, currently provides accommodation for the construction workforce of around 350 people, however, this is expected to increase to full occupancy in the coming weeks. While all blasting will occur during daytime hours, Woodfibre LNG explains that the project has a noise exemption variance permit from the District of Squamish as some works are required to continue past noise bylaw hours.

Moreover, night work is expected to take place during August, covering marine works, such as pile installation with a vibratory hammer, form work, concrete pours, and site maintenance, including erosion and sediment control. The company can only conduct water operations during the marine window of least risk under federal and Squamish Nation regulation, which opens on August 16, 2024, and will run until January 31, 2025.

Barges are expected to be visible throughout the marine window, conducting piling work for both the marine offloading facility, which will eventually accept the large modules from overseas for the facility, and the installation of the first permanent piles for the export terminal and floating storage tanks.

Woodfibre LNG further confirms that pile driving will occur in August – both within and above the high water mark in preparation for the project components, with all work in or near water subject to a rigorous marine mammal monitoring program to ensure compliance with the federal decision statement and the project’s environmental management plans for the protection of fish, fish habitat and marine mammals.

Once Woodfibre LNG goes full throttle, the export terminal is expected to support the transition to net zero in domestic and international energy playgrounds. Canada, which recently strengthened rules to come to grips with greenwashing and curb its footprint, is developing multiple new LNG projects.

Cedar LNG revealed the go-ahead for a floating LNG (FLNG) facility with a nameplate capacity of 3.3 million tonnes per annum in June 2024, enabling the project to be built in the traditional territory of the Haisla Nation, on Canada’s West Coast.

Another project, LNG Canada, is putting the required pieces in place to bring an LNG export terminal into operation later this year in Kitimat, Canada’s British Columbia, with the completion of the final weld on the first production train and the arrival of refrigerants in the form of liquified petroleum gas that will be used for cooling the delivered natural gas.