Woodfibre LNG Moves Forward in Guangzhou Joint Venture

Pacific Oil and Gas (PO&G) (Nansha) Holding Limited, subsidiary of PO&G – itself managed by Sukanto Tanoto’s RGE – recently announced its signing of a letter of intent (LOI) for the Guangzhou LNG peak-shaving terminal joint venture. The LOI was also signed by Guangzhou Development Gas Investment Company, a subsidiary of Guangzhou Gas Group, and Guangzhou Port Ltd.

The terminal, expected to have a capacity of 2 million tonnes of LNG per year, should be complete by 2020.  The terminal is expected to optimise the energy infrastructure of Guangzhou, improve energy supply reliability, improve the air quality, and reduce greenhouse gas emissions in the region. It represents a move to meet growing global demands for renewable energy sources, and a promise to the community to produce energy more sustainably –a promise Sukanto Tanoto  has actively tried to keep with his 4Cs philosophy.

The signing, witnessed by RGE Chairman Sukanto Tanoto, and Guangzhou Deputy Mayor Cai Chaolin, reaffirms the three parties’ involvement in making the Guangzhou LNG Peak-shaving Terminal a reality. The proposal for joint investment between the parties reflects a concerted effort between LNG buyers and producers to share risks, said Guangzhou Gas’ Deputy General Manager Liu Jingbo.

The signing comes on the back of a Heads of Agreement (HOA) announcement between Woodfibre LNG Export Pte Ltd (Woodfibre LNG Export) and Guangzhou Gas Group. The agreement between both companies will see the Guangzhou-based company offtake 1 million tonnes LNG per annum, for 25 years, from the Woodfibre LNG Project in Squamish, Columbia.