Canada’s Woodfibre LNG project reaches 65% completion

Woodfibre LNG has reached two-thirds completion following the arrival of its 16^th powerhouse module on site in Squamish, British Columbia, the company announced on March 18.

The announcement also comes just one week after the 2.1mn tonnes per year (tpy) project received its liquefaction module.

The powerhouse module will play an integral role as Woodfibre utilizes an all-electric LNG plant as the world’s first net zero LNG export terminal.

The 4,200 metric tonnes module will serve solely as a power and control system. It will receive electricity from BC Hydro and serve as the central hub for distributing electrical power for compressors in the liquefaction process.

“The powerhouse module is essential to the operation of our facility. It will support the delivery and distribution of power needed for our electric-driven liquefaction process — an approach that sets Woodfibre LNG apart as the first LNG export facility in North America designed to use renewable electricity for liquefaction,” Woodfibre LNG CEO Luke Schauerte said in a statement.

Woodfibre LNG has been effective at keeping to timelines, with the project still expected to be completed in 2027.

While some speed bumps were encountered, namely an unsuccessful legal challenge to the company’s request for a second floatel to house additional workers by activist groups, the project has continued to move ahead as scheduled.

However, although construction work has kept to schedule, costs have not. Woodfibre has experienced a severe overrun in costs. When the project reached the halfway point of construction in September, cost estimates had snowballed to $8.8bn from its initial estimate of $5.1bn.

Woodfibre’s ability to stay on schedule bodes well for the new LNG plant, given the uncertainties around LNG supplied by Qatar, which is caught in the crosshairs in the conflict between Israel, the US, and Iran.

Already, at least 17% of QatarEnergy’s LNG output has been removed from the market with damage to two liquefaction trains expected to take three to five years to be repaired.

With its direct shipping path from western British Columbia to buyers in Asia, Woodfibre LNG is well positioned to serve as a reliable supplier for Asian purchasers.