Woodfibre LNG has inked a new deal with McDermott International that will see the engineering company develop a proposed LNG export plant in British Columbia, Canada.

Once developed, the facility will use hydroelectricity for the main liquefaction process and will feature technology that enables liquefaction machinery to restart without flaring, as well as a recycling system of boil-off gas and additional transformers, switchgear and transmission lines.

For the produced LNG, Woodfibre LNG has already signed two offtake agreements with BP, meaning over 70% of its annually throughput has already been sold.

Christine Kennedy, President of Woodfibre LNG, said, “Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure.”

“Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project.”

It is believed that McDermott and Woodfibre LNG’s collaboration and front-end engineering and facility design, relative to typical LNG facilities, will result in an 86% reduction in carbon dioxide emissions per tonnes of LNG produced.

Samik Mukherjee, Executive Vice-President and Chief Operating Officer at McDermott, added, “This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers.”

“This award is a tremendous opportunity to further demonstrate how our LNG and modularisation expertise enables a new generation of sustainable energy solutions.”

Pre-installation work for the project is expected to start early 2022 and gradually ramp up to September 2023, when major construction is targeted to begin. Substantial completion is expected in Q3 2027.