bp Structures Offtake Deal with Canadian-Based LNG Exporter

bp and British Columbia’s Woodfibre LNG facility have come to terms on its third long-term LNG offtake contract. The deal authorizes an offtake of 0.45 MTPA of LNG per year for a 15-year time span on a free on board (FOB) basis. bp, with the signing of this contract, has committed the entirety of Woodfibre’s LNG production to be sold to the company. The export facility provides bp with a total offtake of 1.95 MTPA and the remainder could be acquired on a flexible offtake basis.

Site of Woodfibre LNG facility; Image Credits: Woodfibre LNG

Woodfibre LNG’s offtake agreement allows bp to expand its LNG portfolio to match the target of 30 million tons by 2030. bp will service the Woodfibre facility through the transportation of gas for the duration of the contract’s 15-year term. Utilizing hydro power and electric-driven compression, Woodfibre LNG plans to reach net-zero emissions by 2027.

“As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow and this additional Canadian supply source will further enhance bp’s supply positions in the Pacific region,” said Jonathan Shepard, VP global LNG trading and origination at bp. “We look forward to continuing our close collaboration with Woodfibre LNG.”