Federal government puts $200 million into Woodfibre LNG

The federal government is investing $200 million in the Woodfibre LNG project near Squamish.

Federal Minister of Energy and Resources, Tim Hodgson, was in Vancouver Friday to announce the investment, along with B.C. Premier-designate Lorne Doerkson and other officials.

“Canada is blessed with abundant energy resources, unimpeded access to the Pacific Ocean and a highly skilled workforce — but we need to make strategic investments to turn these advantages into lasting economic strength, energy security and well-paying jobs for Canadians,” said Hodgeson in a statement. 

Doerkson said he is pleased to see the federal government at the table. 

“Woodfibre is demonstrating what is possible when governments, First Nations and industry work together,” he said.

He added that his government, once sworn in on Nov. 20, would work with the federal government to create the conditions for more investment in B.C.

“Canada and B.C. should work together on financing and tax measures, ensure that power and pipeline infrastructure keep pace with new development and expand opportunities for First Nations to become equity partners through provincial and federal loan guarantees,” said Doerkson. 

“Government also has a responsibility to provide certainty and deliver decisions on a timeline that allows good projects to move forward. I intend to hold our government to that standard,” he said.

Construction on the liquified natural gas (LNG) export facility on the west side of Howe Sound began in 2023 and it’s expected to begin operations next year. It was designed to produce 2.1 million tonnes of LNG annually for overseas markets. 

Woodfibre LNG said the facility is expected to be the “world’s first net zero LNG export facility.” It claims the project will have an emissions intensity that is roughly nine times lower than the global average for LNG export facilities.

The Squamish Nation conducted its own environmental assessment and approved the project in 2015, imposing 25 legally-binding conditions. The conditions included a ban on LNG carriers bunkering in Howe Sound and ongoing environmental management oversight. 

The project is operated by Vancouver-based company Woodfibre Management. It is 70 per cent owned by Pacific Energy Corporation, headquartered in Singapore and headed by Indonesian billionaire Sukanto Tanoto. Calgary-based Enbridge holds 30 per cent ownership.

Jeremy Valeriote, B.C. Green MLA for West Vancouver-Sea to Sky, slammed the announcement.

“Another $200m as a gift for the fossil fuel industry, when people and communities are struggling with the cost-of-living crisis? Calling it ‘net-zero’ doesn’t change that today’s announcement means more fracked gas, more emissions, and more of our money flowing to foreign shareholders over British Columbians,” said Valeriote.

Emily Joveski
Emily Joveski
Emily is the provincial news reporter for Vista Radio, based in Victoria, B.C. She has worked in radio for more than a decade, and was previously on the airwaves as a broadcaster for The Canadian Press in Toronto.

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