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 )