Pacific Energy and Enbridge Announce Partnership in Woodfibre LNG
VANCOUVER, BC, July 29, 2022 /PRNewswire/ – Pacific Energy Corporation Limited (Pacific Energy) and Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today announced an agreement to jointly invest in the construction and operation of the Woodfibre LNG project.
Woodfibre LNG is a 2.1 million tonnes per year liquefied natural gas (LNG) export facility with 250,000M3 of floating storage capacity under construction nearby Squamish, BC The project is supported by two long-term offtake agreements with BP Gas Marketing Limited for 15 years representing 70% of capacity, with further development commitments up to 90%. Woodfibre LNG announced in April that it had issued a notice of prosecution to global engineering and construction firm McDermott International and that the project is expected to be commissioned in 2027.
Woodfibre LNG will use electric motors powered by renewable hydroelectric energy, making it one of the cleanest LNG export facilities in the world. The project is the only one in Canada with a non-treaty Aboriginal environmental assessment certificate, the first project approved under the government of from Canada “Five Principles” for Environmental Assessment and has received all major Federal, Provincial and First Nations approvals.
“This partnership is an important milestone for the Woodfibre LNG project,” said Ratnesh Bedipresident of Pacific Energy”, “and this further accelerates from Canada ability to be a significant player in the global energy transition with the production of the lowest carbon LNG in the world.”
“Enbridge is an accomplished North American energy company with significant natural gas operations in British Columbia and Woodfibre LNG is pleased the companies have entered into this investment agreement,” said Christine Kennedy, President of Woodfibre LNG. “We believe this agreement is a testament to the project’s credentials, our world-class indigenous partnerships, incredible environmental due diligence, and Woodfibre LNG’s ambition to produce the lowest-emitting LNG in the world.
“As a leader in the energy transition, Enbridge is thrilled to be part of the Woodfibre LNG facility through this partnership,” said monaco, President and Chief Executive Officer of Enbridge. “This facility will provide global LNG markets with a safe, secure and sustainable source of natural gas from British Columbia through a long-term transportation agreement on our T-South pipeline system. This investment is a natural extension of our export pipeline strategy, with solid business fundamentals. .
“Expanding global access to natural gas through LNG will play a critical role in North America the energy future and will help reduce global greenhouse gas emissions through the replacement of coal-fired power generation, creating strong alignment with our ESG objectives,” Monaco added.
Under the partnership agreement, Enbridge will invest in a 30% interest in the $5.1 billion Woodfibre LNG project, Pacific Energy retaining remaining 70% interest in facility. Capital for the project includes a construction assistance contribution for FortisBC Energy Inc.’s (“FortisBC”) Eagle Mountain to Woodfibre Pipeline Expansion which will link the facility through FortisBC’s system to the Enbridge’s T-South natural gas.
Pacific Energy and Enbridge will each make pro-rated contributions during construction through a combination of asset-level financing and equity investments. In exchange for its capital contribution, Enbridge will receive a preferred interest that will provide predictable future cash flows. The partners will jointly participate in project execution and governance of ongoing operations, while Pacific Energy will retain responsibility for day-to-day operations.
Construction of Woodfibre LNG will be undertaken under an engineering, procurement, fabrication and construction contract with McDermott International. McDermott President and CEO Michael McKelvy welcomed the partnership saying, “The addition of Enbridge is a natural fit as we work together to build the lowest emissions, most sustainable and most innovative LNG export facility in the world. Their proven commitment to enabling a new generation of sustainable energy solutions aligns directly with our goal of setting a new standard for efficient factory design.”
BMO Capital Markets is acting as exclusive financial advisor to Pacific Energy Corporation on the transaction.
Enbridge Forward-Looking Information
Forward-looking information or forward-looking statements have been included in this press release to provide information about Enbridge Inc. (“Enbridge” or the “Company”) and its subsidiaries and affiliates, including management’s assessment of Enbridge and its subsidiaries. future plans and operations. This information may not be suitable for other purposes. Forward-looking statements are generally identified by words such as “anticipate”, “expect”, “project”, “estimate”, “expect”, “plan“, “have ”intent”, ”target”, ”believe”, ‘likely’ and similar words suggesting future results or statements about a prospect. Forward-looking information or statements contained in this press release include statements regarding the Woodfibre LNG project and Enbridge’s investment therein, including the features, components and benefits thereof, in service, as well as the expected costs and funding.
Although Enbridge believes these forward-looking statements are reasonable based on the information available as of the date these statements are made and the processes used to prepare the information, these statements are not guarantees of future performance and readers are cautioned not to place undue reliance on forward-looking statements. statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these statements. Assumptions regarding the expected supply and demand for crude oil, natural gas, natural gas liquids, liquefied natural gas, renewable energy and other raw materials, as well as the prices for such raw materials, are material and underlies all forward-looking statements because they may impact current and future levels of demand for the Company’s services and other energy-related services and products. Likewise, the energy transition, including the drivers and pace thereof, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may affect levels of demand for the Company’s and others’ services and products and the cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on any forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements about announced projects and projects under construction, including estimated in-service dates and the realization of anticipated benefits, include the following: the impact of litigation and actions and approvals government, regulatory authorities and stakeholders on construction and service schedules; the availability and price of labor and construction materials; supply chain stability; the effects of inflation and currency exchange rates on labor and material costs; the effects of interest rates on borrowing costs; technology issues; the impact of weather; and expectations regarding the ability of our partners to carry out and finance the proposed projects.
Enbridge’s forward-looking statements are subject to risks and uncertainties, including, but not limited to, the risks and uncertainties discussed in this news release and in other company filings. with Canadian and United States securities regulators. The impact of any risk, uncertainty or factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Enbridge’s future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge undertakes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on behalf of the Company are expressly qualified in their entirety by these cautionary statements.
About Woodfibre LNG
The Woodfibre LNG Project is owned and operated by Woodfibre LNG Limited, a privately held Canadian company based in Vancouver, BC Woodfibre LNG Limited owns the former Woodfibre pulp mill site, which is located approximately seven kilometers southwest of the city center Squamish, BC
Woodfibre LNG will source natural gas from Pacific Canbriam Energy, a Canadian company with operations in northeast British Columbia. Pacific Canbriam is an industry leader in sustainable natural gas production. For more information, please visit www.pacific-canbriam.ca.
Woodfibre LNG and Pacific Canbriam Energy are subsidiaries of Pacific Energy Corporation Limited.
About Pacific Energy
Pacific Energy, which is part of the SingaporeRGE group of companies, is an independent energy resource development company focused on helping North America and growing Asian economies meet their growing energy needs. The company’s strategy is to invest, develop, build, own and operate innovative and competitive projects throughout the energy value chain, while maintaining constant attention to our role as a responsible corporate citizen.
At Enbridge, we safely connect millions of people to the energy they depend on every day, powering quality of life through our North American natural gas, oil or renewable energy grids and wind portfolio. growing offshore in Europe. We invest in modern power distribution infrastructure to maintain access to safe and affordable energy and we draw on two decades of experience in renewable energy to advance new technologies including wind and solar power , hydrogen, renewable natural gas and carbon capture and storage. We are committed to reducing the carbon footprint of the energy we supply and to achieving net zero greenhouse gas emissions by 2050.
Based at Calgary, Alta.the common shares of Enbridge trade under the symbol ENB on the Toronto (TSX) and New York stock exchanges (NYSE). To learn more, visit us at Enbridge.com
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