Construction costs at Canada's Woodfibre Liquefied Gas project are rising

Enbridge, a Canadian pipeline company, reported that the construction costs of Canada's Woodfibre Liquefied Gas project have increased, causing capital costs to increase for all parties involved.

Woodfibre is a project to build a liquefied gas export facility near Squamish in British Columbia. This project is part of a series of new LNG facilities that are planned along Canada's Pacific Coast. It is expected to be completed in 2027.

Initially, the capital cost of the project was estimated at US$5.1billion. Enbridge, the 30% owner of the project, stated on Friday that recent cost increases were due to delays in obtaining permits, changes to building codes, and the need for a second floating-hotel to accommodate workers. Enbridge's share of project costs has increased from US$1.5bn to US$2.9bn, while our partners proportionate share also increased.

Pacific Energy Corp Ltd is the owner of 70% of the remaining Woodfibre stake. It is a part of Singapore's RGE Group. Woodfibre LNG failed to respond immediately Friday to a comment request. Enbridge stated Friday that it still expects low double-digit returns for the project. This is in line with its initial expectations. Enbridge spokesperson stated that the company is still excited about the project, and the LNG markets. Reporting by Amanda Stephenson, Calgary; editing by Chizu Nomiyama

(source: Reuters)