(Oil & Gas 360) – Canada’s federal government plans to invest approximately $140 million (C$200 million) in the Woodfibre LNG export project in British Columbia, potentially increasing the facility’s annual production capacity by as much as 24% as the country expands its presence in international natural gas markets. The proposed investment, Reuters reported, citing a person familiar with the matter, would support additional infrastructure at the project under construction near Squamish, north of Vancouver.Woodfibre LNG is being developed by Singapore-based Pacific Energy Corporation, which owns 70%, and Canadian pipeline operator Enbridge, which holds the remaining 30%. The facility was originally designed to produce 2.1 million metric tons of liquefied natural gas annually, and the proposed improvements would increase capacity to about 2.5 to 2.6 million metric tons.The additional funding would support upgrades to cooling systems and the commissioning and mooring of floating storage tanks. These improvements could increase export volumes without requiring an entirely new liquefaction facility, potentially improving the economics of the existing development.The project is scheduled to begin operations in late 2027, with its original production capacity fully contracted to BP under three long-term agreements covering 15 years. The arrangements provide a commercial foundation for the project, although marketing and contractual terms for any additional production have not been disclosed.The owners are also exploring a potential second phase, which could further increase export capacity beyond the currently proposed improvements. Any larger expansion would require additional technical evaluation, investment commitments and applicable regulatory approvals.Woodfibre is part of a broader Canadian strategy to diversify natural gas exports beyond the United States and establish a stronger position in Asian energy markets. British Columbia’s Pacific Coast provides relatively direct shipping access to major LNG importers, including Japan, South Korea and China, potentially offering transportation advantages over some competing North American export routes.The proposed investment follows the September approval of a major expansion at Shell-led LNG Canada in Kitimat, British Columbia. That project is expected to double its production capacity from approximately 14 million to 28 million metric tons annually, reflecting growing investment in Canada’s Pacific Coast LNG infrastructure.For Western Canadian natural gas producers, additional export capacity could create opportunities to access international markets and improve long-term demand for production from the Montney and other regional gas formations. Pipeline operators and infrastructure investors may also benefit from increased requirements for gathering, transmission, compression and storage capacity.For Enbridge, Woodfibre represents another component of its expanding natural gas infrastructure portfolio, while BP’s long-term purchase commitments provide exposure to Pacific Basin LNG trade.For energy investors, the proposed government funding highlights Canada’s willingness to support export infrastructure as competition for global LNG market share intensifies. The project’s eventual returns will depend on construction execution, operating costs, shipping economics and international natural gas prices.The expansion also reinforces the growing importance of government participation in major energy infrastructure projects, particularly those requiring substantial upfront capital and long development timelines.About Oil & Gas 360 Oil & Gas 360 is an energy-focused news and market intelligence platform delivering analysis, industry developments, and capital markets coverage across the global oil and gas sector. The publication provides timely insight for executives, investors, and energy professionals. Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.