bp has solidified its commitment to the Woodfibre LNG facility in British Columbia, Canada, by entering into its third long-term liquefied natural gas (LNG) offtake agreement. Under this new contract, bp will purchase 0.45 million tonnes of LNG annually for a duration of 15 years, using a free on board (FOB) arrangement. This development means that the entire LNG production from the Woodfibre LNG export facility is now exclusively earmarked for sale to bp. Of this allocation, 1.95 million tonnes per annum are secured through firm offtake agreements, with the remainder subject to flexible arrangements.
bp’s strategic focus on the LNG sector remains unwavering as it views LNG as a pivotal component of the ongoing global energy transition and its own transformation into an integrated energy enterprise. bp’s ambition is to construct an LNG portfolio totaling 30 million tonnes by the year 2030. This recent partnership with a Canadian west coast supply source not only broadens bp’s flexible and high-quality LNG portfolio but also strengthens the company’s capacity to meet the surging worldwide demand for natural gas.
Beyond securing LNG offtake rights from the Woodfibre LNG initiative, bp will be responsible for the secure and dependable transportation of gas to the Woodfibre LNG export facility throughout the 15-year contractual term.
Jonathan Shepard, Vice President of Global LNG Trading and Origination at bp, emphasized the significance of this move, stating, “As the world continues its pursuit of secure, cost-effective, and environmentally friendly energy sources, the global demand for LNG is poised for sustained growth. This additional supply source from Canada will further bolster bp’s strategic position in the Pacific region. We eagerly anticipate our continued collaboration with Woodfibre LNG.”