Construction Costs Nearly Double at Canada’s Woodfibre LNG Facility Amid Permitting Challenges

Enbridge says construction costs at Canada’s Woodfibre LNG project have jumped due to permit delays, building code changes, and site challenges. The project’s budget, initially $5.1 billion, has significantly increased ahead of its 2027 completion.

(Reuters) — Construction costs at Canada's Woodfibre LNG project have increased, driving up capital costs for all partners involved, Canadian pipeline company Enbridge reported on Aug. 1.

The Woodfibre LNG project is a 2.1-million tonne liquefied natural gas export facility under construction near Squamish, British Columbia. The project is one of several new LNG facilities planned for Canada's Pacific coast, and is expected to be complete in 2027.

The project's capital cost was initially estimated at US$5.1 billion. But Enbridge, which owns a 30% stake in the project, said Aug. 1 on a conference call that costs have recently increased due to permit delays, building code changes, a second floating hotel to accommodate workers, and challenging on-site conditions.

"Our share of the project costs have increased from US$1.5 billion to US$2.9 billion, and our partners' proportionate share has increased similarly," an Enbridge spokesperson said in an email.

The 70% remaining stake in the Woodfibre project is owned by Pacific Energy Corp. Ltd., which is part of the Singapore-based RGE Group of companies. Woodfibre LNG did not immediately respond to a request for comment on Aug. 1.

Enbridge said Aug. 1 it is still expecting low double-digit returns from the project, relatively consistent with what it had initially expected. The company remains excited about the project and the LNG market, Enbridge's spokesperson said.