Woodfibre LNG said its Singapore-based affiliate, Woodfibre LNG Export, has signed a heads of agreement with Guangzhou Gas Group of China for the potential offtake of LNG from the Woodfibre LNG project, being developed in the District of Squamish, British Columbia.
According to Woodfibre LNG’s statement issued on Monday, Guangzhou Gas Group could potentially offtake 1 million tons of LNG per year for a 25-year period starting in 2020.
The HoA follows the signing of a memorandum of understanding between Woodfibre LNG Export and Guangzhou Gas Group in 2014, in regards to the potential LNG offtake deal.
Under the heads of agreement, Guangzhou Gas Group could potentially snap up 10 percent of the equity of Woodfibre LNG.
The Woodfibre LNG project is expected to start production in 2020 with an annual capacity of approximately 2.1 million tons.
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