Royal Golden Eagle (RGE), a managing group operating resource-based manufacturing companies globally, successfully carried out the largest LNG project Canada has seen in recent years. This operation will help utilise Canada’s abundant reserves of natural gas in an efficient manner.
Canada has attracted several liquefied natural gas (LNG) projects over the years due to their plentiful natural gas reserves. According to an energy market assessment by the National Energy Board (NEB) of Canada, in December 2014, Canada’s total remaining marketable natural gas resource size was 1,087 trillion cubic feet (Tcf).
This was executed through Pacific Oil and Gas (PO&G), a company managed by RGE. PO&G is an independent energy resource manufacturing company focused on meeting the market’s demand.
The company makes investments throughout the energy supply chain, while ensuring they remain responsible corporate citizens. A major investment made by PO&G was through their direct subsidiary Woodfibre LNG Limited, the company behind RGE’s large-scale LNG project in Canada.
The project, carried out under the name ‘Woodfibre LNG project’, will be taking place at a site seven kilometres southwest downtown Squamish, British Columbia. The site was previously used as a pulp and paper mill, and has been converted to fit the LNG project’s needs.
The project, with a capital cost of $1.4-$1.8 billion, is expected to produce two million tonnes of natural gas a year. Their first delivery is expected in 2023.
“The Woodfibre LNG Project is on track to be one of the first LNG processing and export terminals in Canada,” said David Keane, upon being named President of Woodfibre LNG. “I welcome this opportunity to be directly involved in building an LNG facility, and to help create all of the jobs, training and other economic opportunities that come with this project.”
PO&G’s main export market is the emerging Asian economy. Countries like Japan, South Korea, Taiwan, China, and India are among the top few countries in Asia with increasing demand for LNG.
On June 26th 2019, Woodfibre LNG signed a binding LNG Sales and Purchase Agreement (SPA) with BP Gas Marketing Limited (BP), a wholly owned indirect subsidiary of BP PLC. Under the terms of the SPA, BP will receive 0.75 million tonnes per annum (MTPA) of LNG over 15 years on a free-on-board (FOB) basis.
“We are honoured to have BP as a foundation customer of our Woodfibre LNG project,” said Ratnesh Bedi, PO&G President. “BP is a global LNG portfolio player and a pioneer in the international LNG business. We look forward to providing BP with a consistent supply of flexible Canadian LNG that can displace more carbon-intensive fuels.”
Royal Golden Eagle, formerly known as Raja Garuda Mas, was founded in 1973 by Indonesian businessman Sukanto Tanoto. With over 60,000 employees, their operations span Indonesia, China, Brazil, Spain and Canada. The company’s assets are valued at $20,000 million, with plans in motion to continue expansion.