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Construction costs rise at Canada's Woodfibre LNG project
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Construction costs rise at Canada's Woodfibre LNG project
Aug 1, 2025 11:51 AM

CALGARY, Aug 1 (Reuters) - Construction costs at

Canada's Woodfibre LNG project have increased, driving up

capital costs for all partners involved, Canadian pipeline

company Enbridge ( ENB ) reported on Friday.

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 ( ENB ), which owns a 30% stake in the project,

said Friday 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 ( ENB ) 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 Friday.

Enbridge ( ENB ) said Friday 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 ( ENB ) spokesperson said.

(Reporting by Amanda Stephenson in Calgary; Editing by Chizu

Nomiyama )

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