Blog Post
bp Expands Renewable Energy Portfolio with Third Long-Term LNG Offtake Contract from Woodfibre's Net-Zero Facility
John Plesnicar • September 5, 2023
- Date: 5 September 2023
- Contract: bp enters third long-term liquefied natural gas (LNG) offtake contract from Woodfibre’s British Columbia LNG facility.
- Agreement: Under the sale agreement, all LNG output from the Woodfibre LNG export facility is now committed for sale to bp.
- LNG Supply: Woodfibre LNG facility in British Columbia, Canada, is the source of supply.
- Commitment: The new contract commits bp to offtake 0.45 million tonnes of LNG per year (mtpa) for 15 years on a free on board (FOB) basis.
- Total Commitment: Including previous contracts, bp's firm offtake from Woodfibre LNG totals 1.95 mtpa, with the remainder on a flexible offtake basis.
- Portfolio Expansion: The additional Canadian LNG supply enhances bp's flexible, high-quality LNG portfolio, contributing to the company's goal of building an LNG portfolio of 30 million tonnes by 2030.
- Net-Zero Ambitions: The Woodfibre LNG facility aims to become the world's first net-zero LNG facility by 2027, utilizing hydro-powered, electric-driven compression.
- Collaboration: bp expresses commitment to close collaboration with Woodfibre LNG as part of its efforts to secure and provide sustainable LNG supply.
- Statement: Jonathan Shepard, VP global LNG trading and origination at bp, emphasizes the significance of the Canadian supply source in enhancing bp's Pacific region supply positions and supporting global energy needs.
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