LNG Canada’s planning, engineering work moving forward

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FORT ST. JOHN, B.C. — LNG Canada has confirmed engineering and planning work is moving forward on the 4,500-person construction workforce accommodation centre for its proposed LNG export facility in Kitimat.

However, it says construction on ‘Cedar Valley Lodge’ will not begin unless the Shell-led consortium’s final investment decision, clears the way for the project to move forward.

Under a joint venture, Bird Construction Incorporated and Civeo Corporation will design and build the 1.2-million square foot Centre.

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Current plans call for it to include a kitchen and dining area of almost 80,000 square feet, a 56,000-square foot recreational facility, and entertainment areas of nearly 35,000 square feet.

However, earlier this week, Royal Dutch Shell Chief Financial Officer, Simon Henry, seeded some doubt about speculation, the LNG Canada FDI is likely to come late this year.

He said LNG Canada is competing within the next twelve months for funding dollars with two American based LNG projects, as well as a chemical plant in the U.S. He added it is highly unlikely that more than two of them, and maybe only one of them, will go ahead in that time frame, and could further dash B.C. government hopes of shipping LNG by 2020.

In the past year, LNG prices have fallen dramatically in tandem with oil prices, and that combined with a supply glut from the U.S. and Australia is forcing investment reviews by those proposing multi-billion-dollar projects.

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