Eoin Finn disputes recent Woodfibre claim that it has secured an agreement to export LNG to Chinese city of Guangzhou.
(by Margot Grant)
Despite the announcement this week that Petronas’ Pacific Northwest LNG megaproject has been cancelled, Woodfibre vice-president Byng Giraud says his company’s project will be in operation by 2020. But Eoin Finn, who has campaigned vigorously against Woodfibre, calls the assertion “beyond disbelief.”
The controversial Woodfibre LNG export facility project on Howe Sound, west of Squamish, would produce approximately 2.1 million tonnes per year of LNG from natural gas produced by fracking in northern B.C.
Woodfibre LNG Limited is a subsidiary of Pacific Oil & Gas Limited, part of the Singapore-based RGE group of companies.
Related: Eoin Finn: “Fight is almost over, Woodfibre LNG is nearly dead in the water”
According to Giraud, Woodfibre will proceed because it has an export relationship for 1 million tonnes with the Chinese city of Guangzhou, and LNG import facilities are already under construction.
However, Finn claims Woodfibre has only a memorandum of understanding with Guangzhou.
“A memorandum is not a signed contract,” he said July 27. “It is basically worth nothing. Woodfibre needs $2 billion to build the facility. No bank will lend that money without a binding contract for 25 years for 80 per cent of production.”
Finn also says there is no construction activity for LNG import facilities in Guangzhou.
“Woodfibre LNG parent company Pacific Oil & Gas Limited would need to be an equity partner in that project, and that is a long time away. The current price for LNG is less than $6 [per million BTUs] while it costs $12 to produce it here and export it to China.”
Finn bases his claims on information gleaned from trade media.
“We read the LNG industry papers and web-based information,” Finn says. “These things would have been announced. They would be big news in the LNG world. But nothing of the sort has happened.”
Giraud could not be reached for comment.