Woodfibre LNG Project Faces Squamish Tax Dispute as Construction Passes 65%

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The Woodfibre LNG project is a 2.1 million tonne a year LNG export facility under construction near Squamish, British Columbia, and is more than 65% complete, according to the developer, with completion targeted for late 2027. On September 22, 2026, Squamish council rejected a proposed 10 year, $142 million tax agreement in a 5 to 2 vote.

Woodfibre LNG Project Costs Rise as Feedgas Pipeline Advances and LNG Canada Doubles

Global Energy Monitor cites reports that the project cost has risen to about US$8.8 billion from US$5.1 billion, while the feedgas pipeline supplying the plant completed tunnel excavation in September. Meanwhile, LNG Canada Phase 2 took a final investment decision on September 28, 2026 to double the Kitimat plant to 28 million tonnes a year.

Project Overview

• Project Name: Woodfibre LNG Project
• Location: Former Woodfibre pulp and paper mill site, about 7 kilometers southwest of Squamish, Howe Sound, British Columbia
• Owners: Pacific Energy Corporation (70%) and Enbridge (30%)
• Capacity: 2.1 million tonnes a year of LNG, with 250,000 cubic meters of floating storage
• Project Value: Reportedly about US$8.8 billion, up from US$5.1 billion; Enbridge share of expected capital costs is US$2.9 billion
• Status: More than 65% complete, with 16 of 19 modules delivered as of March 2026
• Expected Completion: Late 2027, according to the developer
• Workforce: About 1,500 people at peak construction and about 100 long-term operations roles
• Power Strategy: Electric drive liquefaction powered by BC Hydro hydroelectricity
• Environmental Regulation: Squamish Nation acts as a full environmental regulator alongside provincial and federal governments

Project Team

• Developer: Woodfibre LNG
• Majority Owner (70%): Pacific Energy Corporation
• Co-owner (30%): Enbridge
• Engineering and Construction Contractor: McDermott International
• Electric Drive Motor Supplier: Siemens
• Power Supplier: BC Hydro
• Feedgas Pipeline Developer: FortisBC
• Local Authority: District of Squamish
• Environmental Regulator: Squamish Nation
• Related Project Operator: LNG Canada
• Related Project Lead Participant: Shell

Reported 5th September 2025: Construction of the $5.1 billion Woodfibre LNG project near Squamish, British Columbia, has now reached its halfway milestone. The progress was marked by the arrival of four new modules, including two pipe racks, a boil-off gas compressor, and a flare knock-out drums module. Each of these units plays a critical role in ensuring safety and efficiency at the facility.

The decision to use modular construction not only enhances safety but also improves scheduling and quality control. Importantly, the project is also setting a new precedent by granting the Squamish Nation full authority as the environmental regulator, reflecting a landmark agreement in Indigenous participation and oversight.

Project Factsheet: Woodfibre LNG

Total Investment: $5.1 billion.

Location: Near Squamish, British Columbia, Canada.

Ownership: 70% Pacific Energy, 30% Enbridge.

Current Status: Construction has passed the halfway point.

Key Modules Arrived: Two pipe racks, boil-off compressor, and flare knock-out drums.

Facility Goal: World’s first net-zero LNG export project.

Power Source: Hydroelectricity with electric drives to cut emissions.

Environmental Oversight: Squamish Nation serves as full regulator.

Operational Start: Expected by 2027.

Capacity: Up to 2.1 million tonnes per year of LNG.

Cost Challenges: Rising costs due to site conditions, codes, and worker housing.

Community Impact: Hundreds of jobs and economic stimulus for Squamish.

Driving Sustainability Through Innovation

Woodfibre LNG aims to redefine LNG production by minimizing emissions and maximizing efficiency. By using hydroelectric power and advanced electric drives, the project is set to avoid more than 230,000 tonnes of greenhouse gases compared to conventional LNG facilities. This positions the plant as one of the cleanest LNG projects globally, reflecting a broader industry shift toward sustainability seen in ventures such as McDermott’s MSA for the proposed $25 billion Monkey Island LNG export facility in Louisiana.

Economic and Regional Importance

Beyond its technological advancements, the project has significant economic value. It provides employment opportunities and injects long-term benefits into the Squamish region. At the same time, Canada strengthens its global energy position, joining other projects like Cedar LNG, which is majority-owned by the Haisla Nation and expected to start operations in 2028.

Looking Toward Completion

Despite cost escalations, the project remains on schedule for completion in 2027. Once operational, Woodfibre LNG will not only support global LNG demand but also showcase how sustainable practices and Indigenous-led oversight can redefine major energy infrastructure, similar to innovative offshore ventures like the world’s largest floating LNG facility.