Torys acted as counsel to Enbridge in its partnership arrangements with Pacific Energy Corporation Limited for the construction and operation of the C$5.1 billion Woodfibre LNG project in southwestern British Columbia, including the acquisition of a 30% equity interest from Pacific Energy.
Woodfibre LNG is a proposed 2.1 million-tonne-per-year liquefied natural gas (“LNG”) export facility with 250,000M3 of floating storage capacity. It is currently being built near Squamish, British Columbia, a town located on the northern tip of the Howe Sound, midway between Vancouver and Whistler.
On July 29, 2022, Enbridge and Pacific Energy announced their agreement to jointly invest in the construction and operation of the Woodfibre LNG.
Under the partnership agreement, Enbridge will invest in a 30% ownership stake in the project, with Pacific Energy retaining a remaining 70% stake. Capital for the project includes a contribution in aid of construction for the expansion of FortisBC Energy Inc.'s ("FortisBC") Eagle Mountain to Woodfibre pipeline which will connect the facility through FortisBC's system to Enbridge's T-South natural gas transmission system.
Pacific Energy and Enbridge will each make pro-rata contributions during construction through a combination of asset level financing and equity investments. In exchange for its capital contribution, Enbridge will receive a preferred equity interest that provides predictable future cash flows.
The partners will jointly participate in project's execution and governance of ongoing operations, while Pacific Energy retains responsibility for daily operations.
Further information can be found on Canada Newswire’s website.
Enbridge connects millions of people to the energy they rely on every day, through their North American natural gas, oil or renewable power networks and their growing European offshore wind portfolio. They are investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on two decades of experience in renewable energy to advance new technologies including wind and solar power, hydrogen, renewable natural gas and carbon capture and storage.
Pacific Energy, which is part of the Singapore-based RGE group of companies, is an independent energy resources development company focused on helping North America and growing Asian economies meet their increasing energy requirements.
The Torys team was led by Derek Flaman and included David Cuschieri, Amy Maginley, Matthew McMahon, Tanis Makowsky and Matt Bean (corporate/M&A), Kevin Fougere (financing), Andrew Bedford (real estate), David Wood (energy regulatory), Craig Maurice (tax).
Torys also acted on the following in connection with this project: