Canada’s Woodfibre LNG reaches 75% complete, targets mid-2027

Canada’s Woodfibre LNG is nearing completion with the project 75% finished construction, it announced on October 22.

The project located in Squamish, British Columbia is now eyeing completion of the construction phase in mid to late 2027.

It marks another key step forward for the project, which reached 65% completion in March. The project, which will boast a production capacity of 2.1mn tonnes per year (tpy), has been highly successful in keeping to time schedules.

However, on the other hand the project has struggled with cost over-runs. At the half-way point of the project’s construction, costs had grown to $8.8bn from its initial estimate of $5.1bn. A number of causes were behind the project’s costs climbing by 73%, including permit delays, the need for additional accommodation for employees, building code changes, and difficult on-site conditions.

Woodfibre LNG is one of four projects in Canada to be earmarked for being fast-tracked. In July, the provincial and federal governments inked a cooperation agreement designed to accelerate the development of LNG Canada Phase 2, Ksi Lisims LNG, Cedar LNG, and Woodfibre LNG. Since signing the agreement, LNG Canada took a positive final investment decision (FID).

Woodfibre LNG is attempting to make waves as an all-electric LNG plant as the world’s first net zero LNG export terminal. Through the use of electric drives, the project is estimated to avoid over 230,000 tonnes of carbon dioxide equivalent emissions compared to conventional LNG plants.

Upon completion, Woodfibre LNG will begin shipping cargoes to UK supermajor BP, which has agreed to purchase 100% of all Woodfibre LNG’s supply. The project, which has McDermott as its main contractor, broke ground in November 2023.