Cedar branches are displayed at the booth of the Squamish-based Woodfibre LNG proposed Liquefied Natural Gas export facility during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023.
Originally projected at US$5.1 billion, the total capital cost has risen due to several factors, including delays in obtaining permits, updates to building codes, the addition of a second floating hotel for workers, and challenging site conditions. Enbridge, holding a 30% stake in the project, reported that its share of the costs has increased from US$1.5 billion to US$2.9 billion.
“Our share of the project costs have increased from US$1.5 billion to US$2.9 billion, and our partners’ proportionate share has increased similarly,” an Enbridge spokesperson stated in an email.
The remaining 70% stake in the Woodfibre LNG project is held by Pacific Energy Corp Ltd, a subsidiary of the Singapore-based RGE Group. Pacific Energy Corp Ltd was not available for immediate comment on Friday.
Despite the cost increase, Enbridge remains optimistic about the project’s outlook, anticipating low double-digit returns, in line with initial projections. “The company remains excited about the project and the LNG market,” the Enbridge spokesperson added.
The Woodfibre LNG facility is poised to contribute to Canada’s growing presence in the global LNG export market, with construction progressing to meet the 2027 completion target.
