FEBRUARY 2017VOLUME 4, ISSUE 1

Woodfibre LNG: The Project

Woodfibre LNG Limited is committed to supporting the local community. Since 2013, we’ve donated more than $250,000 to events and groups that make Squamish such a special community. Through the Fall 2016 Community Sponsorship Program we gave more than $20,000 to groups including:

Squamish Sikh Society $5,000 to provide musical

instruments to the Punjabi school

Community Sponsorship Program

We accept sponsorship applications twice a year. If your organization works in education, youth sport or the environment, and you’re looking for funding, download an application form from woodfibrelng.ca/Community and return it to us by March 30, 2017.

835 Griffin Royal Canadian Air Cadets

$3,000 to train the squadron in Level One first aid

Britannia Mine Museum $5,000 to support the museum’s

schools program

Squamish Mountain Bike Fest $3,000 to support Spakwus 50 –

the 2017 provincial marathon mountain bike championship

On November 4, 2016, we announced that our parent company had authorised the funds necessary to build the Woodfibre LNG project. Or, as our Country Manager and Vice President of Corporate Affairs, Byng Giraud, said, “So this project, if [it’s] not clear, is a go!”

This is a significant milestone for our project and a testament to almost four years of hard work by our team - and you! Building a project that’s right for Squamish meant hearing from as many of the local community as possible, and we’d like to thank those you who shared your knowledge of Squamish and comments about our project, to help us build a better facility.

Premier Christy Clark, Cabinet Ministers, MLA Jordan Sturdy and members of the community joined us at the Woodfibre site to celebrate our announcement.

And Premier Clark reiterated her support. “I am delighted to welcome this good news, which will undoubtedly help us continue to create good, sustainable, environmentally-sound, high-paying jobs for British Columbians in this region,” she said.

Pending permitting, we expect to begin site preparation in 2017 and for our facility to be operational by 2020. Once the real construction work begins, we expect to have 650+ people working in Squamish at the peak of construction, and 100+ full time jobs at the Woodfibre site and in Squamish when the facility is operational.

The Woodfibre LNG project is on track to be the first liquefied natural gas export facility in Canada, and one of the greenest LNG facilities in the world.

Woodfibre LNG Project is a Go!

“B.C.’s New Democrats are supportive of Woodfibre LNG and the jobs and economic activity it will bring to our province.”

- John Horgan, B.C. NDP leader

“[This] establishes British Columbia as one of an increasing number of suppliers of energy to growing Asian markets in the very competitive global LNG sector; and also signals that BC is an attractive location in which to invest global capital.”

- Greg D’Avignon, President and CEO, Business Council of British Columbia

“[This] marks the beginning of a tremendous opportunity for British Columbia to play a significant role in the global fight against climate change, using the world’s cleanest LNG to help countries transition away from coal and oil.”

- Hon. Christy Clark, Premier B.C.

we were pleased to see you at Squamish’s Canada Day celebrations

JULY 1

we enjoyed the 2016 Squamish Sikh Parade & Festival

JUNE 18

we sponsored the Squamish Chamber of Commerce Golf Tournament & worked on our swing

we sponsored the 2016 Squamish Children’s Festival and enjoyed some chalk drawing

we cheered on riders in the 2016 GrandFondo and offered spectators a gathering place

we shared our tent for volunteer shelter at Ride Away Stigma

we volunteered as race marshals for the Sea to Sky Scramble

we were wowed by the skills on show at Squamish Days Loggers Sports festival

JUNE 23SEPT 4

SEPT 10

SEPT 18JUNE 25JULY 28-AUG 1

INVESTING IN OUR COMMUNITY

We’re proud to partner with our neighbours, and support the groups and events that make the Squamish

community so vibrant. Over the past few months we’ve joined you

at community events and delivered $11,000 in sponsorships.

REPAIRS AND UPGRADES TO THE HISTORICAL LEACHATE TREATMENT SYSTEM

In late November 2016, Woodfibre LNG staff identified five incidents when diluted leachate spilled onto the ground at the Woodfibre site.

Each incident happened during a period of intense rain. They occurred well back from the foreshore of Woodfibre site, and there’s no evidence that the rainwater-diluted leachate entered Howe Sound.

We reported these incidents to the B.C. Ministry of Environment and Emergency Management BC, our staff continue to monitor the site while we work to find a permanent solution to preventing spills from the inherited mill landfill.

“These events underscore the challenges of managing a 100-year-old industrial site,” said Jennifer Siddon, Associate Vice President of Corporate Communications, Woodfibre LNG Limited. “Since we took ownership of this site in 2015, we’ve taken our responsibility to manage the site seriously, and we are committed to finding a permanent solution.”

While we work towards a permanent solution, we’ve taken action to prevent incidents in the short term: we’ve installed a new portable leachate treatment facility on the site, replaced sections of historical piping and made sure we have additional spill response equipment on hand. And we’re in regular contact with the B.C. Ministry of Environment while we work to resolve these issues, and prepare a long-term plan for monitoring and maintenance.

WHAT IS LEACHATE?

‘Leachate’ is the result of rain percolating through materials and absorbing other substances – in this case, rain sinking through the waste in the historic landfill left by the pulp mill and caught by the landfill liner.

LOGGING ACTIVITY

From August to November 2016, the Woodfibre LNG site was home to log handling operations by Sqomish Forestry LP.

Logs were sorted and bundled in the historical log sort area of the Woodfibre site and then transported to the Galbraith Log Sort for further processing. The cut blocks are located outside of the Woodfibre site.

Up to 25 people were on site over the three months, bringing the logging buzz back to the old pulp mill site.

GEOTECHNICAL STUDIES

In October 2016, we conducted geotechnical work on the Woodfibre site.

Boreholes were drilled on land and in the foreshore of the site to get a closer look at ground conditions in and around the structures planned for the proposed LNG facility.

This work was timed within Fisheries and Oceans Canada’s window for the protection of fish and fish habitat in Howe Sound.

Work Underway at the Woodfibre LNG Site

3

us before we took part in Grind for Kids race up the Grouse Grind for BC Children’s Hospital

we celebrated our community’s diversity at the Multicultural Festival

we got into the festive spirit at the Santa Clause Parade

we hosted another successful Shoreline Clean Up in Darrell Bay

we sponsored the BIA “Pumpkin Patch” and collected warm clothing for Howe Sound Women’s Centre

we enjoyed the atmosphere at the annual Crave fundraising for Helping Hands Society

we joined the Chamber of Commerce to decorate at the Squamish Adventure Centre

we supported a great team at the Squamish Fire Fighters Gala

SEPT 24 OCT 1

DEC 2

SEPT 28 OCT 22

OCT 29

NOV 24

NOV 5

On October 21, 2016, Squamish Nation Chiefs and Council selected air cooling for the Woodfibre LNG facility. The choice of cooling technique for Woodfibre LNG’s processing facility is one of the 13 conditions of Squamish Nation’s Environmental Assessment Agreement and Environmental Certificate with Woodfibre LNG – likely a first-of-its-kind agreement between First Nations and industry in Canada.

Woodfibre LNG had proposed seawater cooling as its preferred option to remove heat from our processing facility, and this technique was approved in our provincial and federal environmental approvals. However on reviewing scientific and environmental analysis, alongside traditional and current culture use and values of the Squamish Nation, Chiefs and Council selected air cooling.

“The Squamish Nation Process allows the Nation to make an informed decision based on the best information available from its perspective, feedback from its members, and advice from independent consultants and scientists,” said Chief Ian Campbell, Squamish Nation.

We’re committed to working with the Squamish First Nation as we bring responsible and sustainable economic opportunity to the region. Although air cooling has the potential to reduce LNG production by about 2 per cent, we’re happy to proceed with this selection.

“From the very beginning, we’ve been committed to building a better project, and to upholding a higher standard for industrial projects,” said Byng Giraud, Country Manager and Vice President of Corporate Affairs, Woodfibre LNG Limited. “By agreeing to participate in the Squamish Nation Process, and by implementing these conditions, we are meeting our objectives.”

HOW DOES AIR COOLING WORK?

Have you ever noticed how hot your car engine is after a long drive? The moving machinery generates heat, and the vehicle’s cooling system prevents damage to the engine.

Industrial air cooling works similarly to your car’s cooling system. Under your hood, coolant circulates through the engine absorbing heat generated by the moving machinery, which cools the engine. The hot liquid then moves to the radiator, a type of ‘heat exchanger’, where the heat dissipates into the air stream, before the cooled liquid returns to the engine to begin the process again. The car’s fan increases the transfer of heat from the radiator to the air.

Our system will work in much the same way: ‘mixed refrigerant’ will move through sealed piping, absorbing heat from our facility, and dissipating it in our heat exchanger. When necessary, large fans will blow over the heat exchanger to help this cooling process.

Things to know…

• operated as needed – the number of fans required will depend on ambient air temperature

• powered by electricity from BC Hydro - helping make this one of the greenest LNG facilities in the world

• coolant is recycled - the refrigerant cycles through the system continually

Squamish Nation Selects Air Cooling

WOODFIBRE LNG IS MAKING THE SWITCH!

As a result of the Squamish Nation environmental assessment process, the Woodfibre LNG Project is changing cooling technology - from seawater to air cooling. To make it official, we need to apply to amend our Environmental Assessment Certificate (EAC). You can learn more about the amendment, including two other proposed changes to our project, by visiting the BC Environmental Assessment Office (EAO) website (www.eao.gov.bc.ca/pcp/index.html). Do you support “the switch” and Woodfibre LNG? Visit the EAO web site during the public comment period from February 9, until March 11, 2017 and say YES to air cooling and YES to Woodfibre LNG!

On October 25, 2016 we announced that we had awarded Front-End Engineering and Design (FEED) contracts to KBR Inc. and JGC America Inc.

Over the next few months, engineers from these companies will review our requirements and technical studies, and deliver detailed plans for constructing our facility. The FEED process helps us breakdown the work needed into phases, and provides a clearer idea of the timeline and budget for each part of the project.

“KBR and JGC are world leaders in LNG engineering and design,” said Byng Giraud, Country Manager and Vice President of Corporate Affairs for Woodfibre LNG Limited, “And we are very pleased that they are providing their world class expertise to our project.”

Once the FEED process is complete, one of these companies will be awarded an Engineering, Procurement and Construction (EPC) contract, and we’ll be one step closer to construction.

Contracts Awarded for Front-End Engineering and Design

CONTACT USTo read previous issues of our newsletter, or to sign up for Project Update emails, visit our website.

We look forward to hearing from you.

woodfibrelng.ca askwoodfibrelng.ca

COMMUNITY OFFICE to February 28, 2017

#43-40137 Government Road (Amblepath)Squamish

PROJECT INFO LINE1-888-801-7929

MAIL

Woodfibre LNG Project PO Box 280 Squamish, BC V8B 0A3

EMAIL info@woodfibrelng.ca

4

Once a month we open the doors of our Squamish Community Office to the business community. Join us to meet other business owners and talent, network or chat about local happenings.

Follow us on Facebook to find out when we’re meeting and hear about our occasional guest speakers.

What’s Next for Woodfibre LNG?

Detailed design complete

Facility operationalSite preparation, continue working with Squamish Nation to fulfill the

Squamish Nation Agreement

NOW AND ONGOING

Procurement activities, construction begins

2020FALL 2017 ONWARD

SUMMER 2017

INTERESTED IN WORKING ON THE WOODFIBRE LNG PROJECT? We’re committed to making sure that local businesses are aware of opportunities with our project, and it’s our intention to fill positions and contracts locally where possible.

To be considered for opportunities with our project be sure to register in our Business Directory at: woodfibrelng.ca/work-with-us.

And if you don’t see a job opening that matches your skill set, but you have experience that could help us deliver the project, send us your resume: careers@wlng.ca.