LNG project in Canada delayed until 2018
A liquefied natural gas (LNG) export terminal construction located on the British Columbian coast has been deferred until 2018.
This is due to Woodfibre LNG Ltd’s attempts to make the C$1.6bn (US$1.3bn) development competitive against weak prices.
The Vancouver-based company are finance by Sukanto Tanoto’s RGE Group, and are the first to construct a Canadian natural gas seaborne export.
The terminal should have been exporting its capacity of 2.1Mtpa (million tonne per annum) in 2017, but now aims for completion next year.
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“We’re definitely moving forward, but the reality is that we still have some issues to resolve before we can say: ‘We’re in and this is actually happening on this timeline,'” commented spokeswoman Jennifer Siddon.
“The process between the completion of FEED and EPC can take several months, so that would take us into 2018,” she added.
KBR Inc and JGC Corp have completed the dual front-end engineering process, allowing the company to continue to the next stage of engineering, procurement, and construction.
Woodfibre is now pursuing aid from provincial and federal governments for a competitive advantage.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.