Construction costs for the Woodfibre LNG project near Squamish, B.C. have increased partly due to permitting delays, stakeholder Enbridge Inc. (TSX:ENB; NYSE:ENB) reported Friday.
The Canadian pipeline company holds a 30 per cent stake in the project. Enbridge updated its share of capital costs to US$2.9 billion from the previously committed US$1.5 billion during its second-quarter 2025 earnings call last week.
“We’ve had some changes in building codes and permitting delays—not a new issue for most jurisdictions,” said Matthew Akman, Enbridge’s executive vice-president of corporate strategy and president of power, during the call.
He added that the project is adding additional flotilla housing—otherwise known as floatels—to accommodate about 900 more workers during construction, which has also contributed to the rising costs.
Despite the cost increase, Enbridge still expects to earn a return of more than 10 per cent on its investment, according to Akman.
Woodfibre LNG is a 2.1 million-tonne-per-year liquefied natural gas export facility with 250,000 cubic metres of floating storage capacity.
Pacific Energy Corporation Ltd. owns the remaining 70 per cent stake in the facility near Squamish. The two companies announced an agreement to jointly invest in the construction and operation of the Woodfibre LNG project in 2022.
The project is expected to be completed by 2027.
"Our partner, which owns 70 per cent of the project … they do take capital cost risk, but they get the benefit of selling the LNG commodity,” said Akman.
"So I think it's a really good balance of interest there."
