VANCOUVER, BC, July 29,
2022 /PRNewswire/ - Pacific Energy Corporation
Limited (Pacific Energy) and Enbridge Inc. (Enbridge or the
Company) (TSX: ENB) (NYSE: ENB) today announced an agreement to
jointly invest in the construction and operation of the Woodfibre
LNG project.
Woodfibre LNG is a 2.1 million-tonne-per-year liquefied natural
gas (LNG) export facility with 250,000M3 of floating storage capacity
being built near Squamish, B.C.
The project is underpinned by two long-term offtake agreements with
BP Gas Marketing Limited for 15 years representing 70% of the
capacity, with additional commitments in development for up to 90%.
Woodfibre LNG announced in April that it had issued Notice to
Proceed to global engineering and construction company McDermott
International and that the project is expected to be in service in
2027.
Woodfibre LNG will use electric motor drives powered by
renewable hydroelectric power, making this one of the
lowest-emission LNG export facilities in the world. The project is
the only one in Canada with a
non-treaty Indigenous-issued environmental assessment certificate,
the first project approved under the Government of Canada's "Five Principles" for environmental
assessment, and has received all major federal, provincial and
First Nations approvals.
"This partnership is a milestone for the Woodfibre LNG project,"
said Ratnesh Bedi, President of
Pacific Energy," "and it further accelerates Canada's ability to be a meaningful player in
the global energy transition with the production of the world's
lowest carbon LNG."
"Enbridge is an accomplished North American energy company with
substantial natural gas operations in B.C. and Woodfibre LNG is
pleased that the companies have entered into this investment
agreement," said Christine Kennedy,
President of Woodfibre LNG. "We believe this agreement speaks to
the credentials of the project, from our world-leading Indigenous
partnerships to the incredible environmental due diligence, and the
ambition of Woodfibre LNG to produce the lowest-emissions LNG in
the world."
"As a leader in the energy transition, Enbridge is excited to
participate in the Woodfibre LNG facility through this
partnership," said Al Monaco,
Enbridge's President and Chief Executive Officer. "This facility
will provide global LNG markets with a safe, secure and sustainable
source of B.C. natural gas through long-term transportation
agreement on our T-South pipeline system. This investment is a
natural extension of our export pipeline strategy, with strong
commercial underpinnings.
"Expanding global access to natural gas through LNG will play a
critical role in North America's
energy future and will help to reduce the world's greenhouse gas
emissions through the displacement of coal-fired power generation,
creating strong alignment with our ESG goals," added Monaco.
Under the partnership agreement, Enbridge will invest in a 30%
ownership stake in the $5.1 billion
Woodfibre LNG project, with Pacific Energy retaining the remaining
70% stake in the facility. Capital for the project includes a
contribution in aid of construction for the expansion of FortisBC
Energy Inc.'s ("FortisBC") Eagle Mountain to Woodfibre pipeline
which will connect the facility through FortisBC's system to
Enbridge's T-South natural gas transmission system.
Pacific Energy and Enbridge will each make pro-rata
contributions during construction through a combination of asset
level financing and equity investments. In exchange for its capital
contribution, Enbridge will receive a preferred equity interest
that provides predictable future cash flows. The partners will
jointly participate in project's execution and governance of
ongoing operations, while Pacific Energy retains responsibility for
daily operations.
Construction of Woodfibre LNG will be undertaken through an
engineering, procurement, fabrication and construction contract
with McDermott International. McDermott
President and Chief Executive Officer Michael McKelvy welcomed the partnership
stating: "The addition of Enbridge is a natural fit as we work
together to build the lowest-emission, most sustainable and
innovative LNG export facility in the world. Their proven
commitment to enabling a new generation of sustainable energy
solutions aligns directly with our goal to set a new standard for
efficient plant design."
BMO Capital Markets is acting as exclusive financial advisor to
Pacific Energy Corporation on the transaction.
Enbridge Forward-Looking Information
Forward-looking information, or forward-looking statements,
have been included in this news release to provide information
about Enbridge Inc. ("Enbridge" or the "Company") and its
subsidiaries and affiliates, including management's assessment of
Enbridge and its subsidiaries' future plans and operations. This
information may not be appropriate for other purposes.
Forward-looking statements are typically identified by words such
as ''anticipate'', ''expect'', ''project'', ''estimate'',
''forecast'', ''plan'', ''intend'', ''target'', ''believe'',
"likely" and similar words suggesting future outcomes or statements
regarding an outlook. Forward-looking information or statements in
this news release include statements with respect to Woodfibre LNG
project and Enbridge's investment therein, including the
characteristics, components and benefits thereof, expected in
service dates, and anticipated costs and financing.
Although Enbridge believes these forward-looking statements
are reasonable based on the information available on the date such
statements are made and processes used to prepare the information,
such statements are not guarantees of future performance and
readers are cautioned against placing undue reliance on
forward-looking statements. By their nature, these statements
involve a variety of assumptions, known and unknown risks and
uncertainties and other factors, which may cause actual results,
levels of activity and achievements to differ materially from those
expressed or implied by such statements. Assumptions regarding the
expected supply of and demand for crude oil, natural gas, natural
gas liquids, liquified natural gas, renewable energy and other
commodities, and the prices of these commodities, are material to
and underlie all forward-looking statements, as they may impact
current and future levels of demand for the Company's services and
other energy-related services and products. Similarly, energy
transition, including the drivers and pace thereof, exchange rates,
inflation and interest rates impact the economies and business
environments in which the Company operates and may impact levels of
demand for the Company's and others' services and products and cost
of inputs, and are therefore inherent in all forward-looking
statements. Due to the interdependencies and correlation of these
macroeconomic factors, the impact of any one assumption on a
forward-looking statement cannot be determined with certainty. The
most relevant assumptions associated with forward-looking
statements on announced projects and projects under construction,
including estimated in-service dates and the realization of
anticipated benefits, include the following: the impact of
litigation and government, regulatory and stakeholder actions and
approvals on construction and in-service schedules; the
availability and price of labour and construction materials; the
stability of the supply chain; the effects of inflation and foreign
exchange rates on labour and material costs; the effects of
interest rates on borrowing costs; technology-related matters; the
impact of weather; and expectations about our partners'
ability to complete and finance proposed projects.
Enbridge's forward-looking statements are subject to risks
and uncertainties, including, but not limited to those risks and
uncertainties discussed in this news release and in the Company's
other filings with Canadian and United
States securities regulators. The impact of any one risk,
uncertainty or factor on a particular forward-looking statement is
not determinable with certainty as these are interdependent and
Enbridge's future course of action depends on management's
assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes
no obligation to publicly update or revise any forward-looking
statements made in this news release or otherwise, whether as a
result of new information, future events or otherwise. All
subsequent forward-looking statements, whether written or oral,
attributable to Enbridge or persons acting on the Company's behalf,
are expressly qualified in their entirety by these cautionary
statements.
About Woodfibre LNG
The Woodfibre LNG Project is owned and operated by Woodfibre
LNG Limited, a privately held Canadian company based in
Vancouver, B.C. Woodfibre LNG
Limited is the owner of the former Woodfibre pulp mill site, which
is located about seven kilometers southwest of downtown
Squamish, B.C.
Woodfibre LNG will source its natural gas from Pacific
Canbriam Energy, a Canadian company with operations in northeastern
B.C. Pacific Canbriam is an industry leader in sustainable natural
gas production. For more information, please visit
www.pacific-canbriam.ca.
Woodfibre LNG and Pacific Canbriam Energy are subsidiaries of
Pacific Energy Corporation Limited.
About Pacific Energy
Pacific Energy, which is part of the Singapore-based RGE group of companies, is an
independent energy resources development company focused on helping
North America and growing Asian
economies meet their increasing energy requirements. The company
strategy is to invest, develop, build, own and operate innovative
and cost-competitive projects throughout the energy value chain,
while maintaining constant attention to our role as a responsible
corporate citizen.
About Enbridge
At Enbridge, we safely connect millions of people to the
energy they rely on every day, fueling quality of life through our
North American natural gas, oil or renewable power networks and our
growing European offshore wind portfolio. We're investing in modern
energy delivery infrastructure to sustain access to secure,
affordable energy and building on two decades of experience in
renewable energy to advance new technologies including wind and
solar power, hydrogen, renewable natural gas and carbon capture and
storage. We're committed to reducing the carbon footprint of the
energy we deliver, and to achieving net zero greenhouse gas
emissions by 2050.
Headquartered in Calgary,
Alta., Enbridge's common shares trade under the symbol ENB
on the Toronto (TSX) and
New York (NYSE) stock exchanges.
To learn more, visit us at Enbridge.com
For Further Information Please Contact:
Woodfibre LNG/Pacific Energy
Media Rebecca
Scott Director,
Communications Email:rebecca_scott@wlng.ca
|
Enbridge
Media Toll
Free: (888) 992-0997
Email: media@enbridge.com
Investment
Community Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
|
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SOURCE Enbridge Inc.