Woodfibre LNG purchases essential equipment for Squamish project

It is another step toward the liquefied natural gas facility making its final investment decision and comes with federal government support.

Woodfibre LNG says it has ordered its cryogenic heat exchanger, the piece of machinery where natural gas is liquefied and sub-cooled, allowing it to be shipped overseas in tankers. 

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"This purchase indicates Woodfibre LNG's continued commitment to moving forward towards our FID and start of construction later this year," president David Keane said in a news release.

The federal government is boosting the move and removing financial barriers for Woodfibre LNG as well as LNG Canada.

"In keeping with previous public statements that trade barriers would not be permitted to stand in the way of these historic private sector investments, the government is providing relief from duties on fabricated steel contained in modules for the Woodfibre LNG project as well as the previously announced LNG Canada project," reads a federal government press release.

Previously, a 2017 ruling made by the Canadian International Trade Tribunal found that the dumping of some goods from China, Korea and Spain have had a negative impact on Canada’s economy.

As a result, anti-dumping fees were imposed on fabricated industrial steel components from those countries. These tariffs could reach up to 45.8%.

Woodfibre and others argued those tariffs were unfair, but in November 2018 the Canada Border Services Agency ruled the duties would apply to LNG modules as well.

However, this latest announcement protects the Woodfibre and LNG Canada projects from this. The federal government says the modules that would have been subject to tariffs are key components that aren't available in Canada.

Remission of anti-dumping and countervailing duties is generally provided only in situations where there are exceptional circumstances, such as domestic short supply, the feds say.

"As Canada’s transition to a cleaner future gains momentum, our government will continue to support projects that have the potential to meet our energy needs while helping more people get ahead," said Minister of Finance Bill Morneau, in the release on Friday.

"Woodfibre LNG, along with LNG Canada,are prime examples of how economic growth, environmental protection and partnerships with Indigenous Peoples can come together to create good, well-paying middle-class jobs."

@ Copyright Pipeline News North

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