Woodfibre LNG has signed a memorandum of understanding (MOU) with Chinese gas distributor Guangzhou Gas Group Co. Ltd (Guangzhou). Under this MOU, Woodfibre LNG will supply one million tonnes of liquefied natural gas per year over a 25-year period, starting in 2017, from its LNG export terminal near Vancouver, British Columbia. The company plans to be producing 2.1 million tonnes per year by the first quarter of that year.
This MOU was one of the business-to-business deals made during the Guangdong Governor Zhu Xiaodan’s three-day visit to B.C., where the Chinese province of Guangdong announced the opening of a trade office in Vancouver, Canada. This office will promote bilateral trade and investment relations between the two jurisdictions, further strengthening trade and cultural ties that span decades.
The LNG offtake contemplated in the MOU will provide long-term stable supply of natural gas to meet the rapidly-growing demand in Guangzhou City. Guangzhou is the capital and largest city in Guangdong Province of China.
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.
Woodfibre LNG is part of the Pacific Oil & Gas group of companies owned by Indonesian entrepreneur Sukanto Tanoto. The company plans to build its LNG terminal on the site of a former pulp mill in the town of Squamish, 70 kms (43 miles) northeast of Vancouver. The site comes equipped with a deep-water port, power infrastructure and a gas pipeline. Woodfibre LNG will help create sustainable economic growth and development in the region and is expected to create approximately 500 jobs during construction and at least 100 full-time jobs during operation.
Read press release from British Columbia newsroom here.