Squamish's Woodfibre LNG has reached a preliminary agreement with the first and largest LNG importer in China.
As with their other offtake agreements, this deal will be finalized closer to the start of plant operations, according to Woodfibre LNG.
Pacific Oil & Gas Limited announced over the weekend that on Sept. 29, its subsidiary Woodfibre LNG Export had signed a Heads of Agreement with CNOOC Gas and Power Trading & Marketing Limited, a wholly-owned subsidiary of CNOOC Gas and Power Group Ltd., for the potential purchase of 0.75 mmtpa of liquefied natural gas for 13 years starting in 2023.
A Heads of Agreement is a non-binding document, which sets out the key terms of a proposed agreement between parties.
CNOOC Gas & Power Group Ltd. has launched nine LNG receiving terminals in China, and imported more than 20 million tonnes of LNG in 2017, according to Woodfibre LNG.
The Squamish plant will have a storage capacity of 250,000 m3 and is licensed to export approximately 2.1 million tonnes of LNG per year for 40 years.
"Natural gas is recognized around the world for its role in a low carbon energy future and we are proud to have an opportunity, even in a small way, to be part of this energy transition," said Ratnesh Bedi, President of Pacific Oil & Gas Limited, in a news release Monday.
Local environmental group My Sea to Sky was quick to dismiss the announcement as "smoke and mirrors."
"This is the third non-binding agreement that Woodfibre LNG has announced, and neither of the two previous agreements have proceeded to a final contract to purchase LNG from Woodfibre LNG," the group said in an emailed statement.
"Building new fossil fuel infrastructure is not compatible with achieving BC's goals to reduce our greenhouse gas emissions. Claims that BC LNG will help to solve China's air pollution are also unsubstantiated."