Woodfibre has become one of B.C.’s first liquefied natural gas plant proponents to secure a customer.
This week, Guangzhou Gas Group Co. Ltd. and Woodfibre LNG have signed a memorandum of understanding (MOU). The LNG offtake contemplated in the MOU outlined a long-term stable supply of natural gas to meet Guangzhou City’s gas demands starting in 2017 — the proponent’s targeted production start date.
It’s a big step, Woodfibre Natural Gas vice president Byng Giraud said. Although the memorandum is not a final deal and doesn’t contemplate price, it does place the proposed export facility in a good position, he noted.
“They [Guangzhou] want to secure some of our supply,” Giraud said.
The Chinese province boasts one of the fastest growing populations in the country, he said. As such, Giruad noted he wouldn’t be surprised if the corporation reached out for a greater supply in the future.
“We as suppliers like to diversify our customers,” he said.
Woodfibre proponents are committing to supplying the Chinese gas distributor with one million tonnes of liquefied natural gas per year over a 25-year term.
The news was initially announced in a provincial press release outlining Guangdong’s decision to open a trade office in Vancouver. In the midst of celebrating the 20th anniversary of the B.C.-Guangdong sister-province relations, the B.C. government and Guangdong Sub-Council of the China Council for the Promotion of International Trade also signed a MOU.
“As sister provinces, B.C. and Guangdong already enjoy cultural, economic and trade ties,” Premier Christy Clark stated. “The new office, the action plan and the MOU signify Guangdong’s confidence in B.C. as an investment and trading partner.”
Woodfibre LNG is a Singapore-registered company. It is a part of the Pacific Oil & Gas group. The project will help create sustainable economic growth and development in the region, the release stated. It is “expected to create approximately 500 jobs during construction and at least 100 full-time jobs during operation,” the release noted. Woodfibre proponents expect to ship 2.1 million tones of LNG to Asia each year.
The Guangdong trade office will open its doors at 1400 Robson Street in Vancouver.
