Energy giant Enbridge (ENB) is taking a 30% stake in the Woodfibre liquefied natural gas (LNG)
processing and export facility located outside Squamish, British Columbia.
News of Enbridge's stake in the Woodfibre facility comes as global demand soars for LNG
following Russia's invasion of Ukraine. U.S. benchmark natural gas prices are currently sitting at
$9 U.S. per mmBTU, its highest level in years.
Privately held Pacific Energy holds a 70% stake in the $5.1-billion LNG project, with Calgary-
based Enbridge now owning the remaining 30%.
The Woodfibre LNG facility is scheduled to begin construction next year (2023). The new LNG
plant will be located on the site of the previous Woodfibre pulp and paper mill that closed in
Woodfibre is scheduled to produce 2.1 million tonnes of LNG per year, with a storage capacity
of 250,000 cubic metres.
In 2017, the National Energy Board approved a 40-year export licence for the British Columbia-
based LNG facility.
The project has also received environmental approvals from the provincial and federal
governments, as well as the Squamish First Nation, which gave the project a green light after
receiving a $1.1-billion benefit agreement.
Enbridge stock is up 16% this year and currently trading at $57.51 per share.