Enbridge (NYSE:ENB) announced on Friday that it will collaborate with Pacific Energy Corp. to invest C$5.1 billion (US$3.98 billion) in the joint development and management of the Woodfibre LNG project in British Columbia.
The liquefied natural gas project will have a 30 percent ownership stake from Enbridge (ENB), with Pacific Energy holding the remaining 70 percent. Enbridge did not disclose the price it would pay for the stake, however.
The money will go toward building the Eagle Mountain to Woodfibre pipeline, which will link the plant to Enbridge’s T-South natural gas transmission system and be built by FortisBC Energy (NYSE:FTS).
More About the Project
The Woodfibre LNG project, which is slated to start operations in 2027, is a 2.1M metric tons/year export plant supported by two 15-year off-take agreements with BP that account for 70% of the facility’s capacity.
An engineering, procurement, fabrication, and construction contract with McDermott International (OTCMKTS:MCDIF) will be used for the construction.
Enbridge (NYSE:ENB) also disclosed adjusted Q2 profits that fell short of expectations and restated its full-year EBITDA and distributable cash flow outlook.
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