Woodfibre LNG Export & Guangzhou Gas Group agreement

Woodfibre LNG Export has signed a Heads of Agreement (HoA) with Guangzhou Gas Group Co concerning potential LNG offtake of 1 mtpa of the LNG for 25 years starting in 2020.

The LNG will be sourced from the Woodfibre LNG Project, which is being developed in the District of Squamish, British Columbia by Woodfibre LNG Limited, a Canadian-based affiliate of Woodfibre LNG Export.

The LNG offtake contemplated in the HoA will provide a long-term stable supply of natural gas to meet the rapidly-growing demand for clean energy in Guangzhou City, People’s Republic of China. Guangzhou is the capital and largest city in Guangdong Province of China.

The Woodfibre LNG Project is expected to start production in 2020 with an annual capacity of approximately 2.1 million tonnes.

The announcement follows the signing in September 2014 of a Memorandum of Understanding between Woodfibre LNG Export and Guangzhou Gas Group.

The HoA includes a potential investment of up to 10% of the equity of Woodfibre LNG Limited by Guangzhou Gas Group, and marks another important step in the development of the Woodfibre LNG Project.

Country Manager and Vice President Corporate Affairs, Woodfibre LNG Limited, Byng Giraud said: “The HoA with Guangzhou Gas Group shows there is an appetite in Asia for made in BC LNG. This preliminary agreement gets us one step closer to making the Woodfibre LNG Project a reality, and bringing much-needed jobs and other economic benefits to Squamish and the surrounding area.”

For more information visit www.woodfibrelng.ca

30th May 2017