BP, a global leader in the energy industry, has solidified its commitment to liquefied natural gas (LNG) as a key component of the energy transition by entering its third long-term offtake contract with the Woodfibre LNG facility in British Columbia, Canada. This strategic move further bolsters bp’s position in the LNG market and aligns with the company’s ambition to become an integrated energy company.
Under the new agreement, bp will offtake 0.45 million tonnes of LNG per year (mtpa) for a duration of 15 years on a free on board (FOB) basis. With this additional contract, all of the LNG production from the Woodfibre LNG export facility is now committed for sale to bp. The firm offtake now totals 1.95 mtpa, with the remainder available on a flexible offtake basis.
bp’s commitment to LNG reflects its recognition of LNG’s significance in the energy transition. The company aims to build an LNG portfolio of 30 million tonnes by 2030. This latest contract from the Canadian west coast source expands bp’s flexible and high-quality LNG portfolio, strengthening its capacity to meet the growing global demand for natural gas.
Jonathan Shepard, VP of Global LNG Trading and Origination at bp, highlighted the importance of this supply source: “As the world seeks secure, affordable, and lower carbon energy, global demand for LNG is expected to continue to grow, and this additional Canadian supply source will further enhance bp’s supply positions in the Pacific region. We look forward to continuing our close collaboration with Woodfibre LNG.”
In addition to securing LNG offtake rights from the Woodfibre LNG project, bp will play a crucial role in ensuring the safe and reliable transportation of gas to the export facility throughout the 15-year contract term.
This move underscores bp’s commitment to a sustainable energy future and its strategic partnerships in expanding the availability of LNG to meet the evolving global energy landscape.