FTS - Enbridge to take 30% stake in Canada's Woodfibre LNG export project

Enbridge ( NYSE: ENB ) said Friday it will partner will Pacific Energy Corp. to spend C$5.1B (US$3.98B) in the joint construction and operation of the Woodfibre LNG project in British Columbia.

Enbridge ( ENB ) will invest in a 30% ownership stake in the liquefied natural gas project, with Pacific Energy holding the remaining 70%, but Enbridge did not specify how much it would pay for the stake.

The investment will contribute toward the construction of FortisBC Energy's ( FTS ) Eagle Mountain to Woodfibre pipeline, which will connect the facility to Enbridge's T-South natural gas transmission system.

Woodfibre LNG is a 2.1M metric tons/year export facility underpinned by two offtake agreements with BP for 15 years, representing 70% of the capacity; the project is expected to begin service in 2027.

Construction will be undertaken through an engineering, procurement, fabrication and construction contract with McDermott International ( OTC:MCDIF ).

Enbridge ( ENB ) also reported Q2 adjusted earnings missed estimates, and reaffirmed full-year guidance for EBITDA and distributable cash flow .

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