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LNG Canada confirms awarding of engineering and procurement contract

A rendering of the proposed LNG Canada facility in Kitimat. Photo by LNG Canada
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FORT ST. JOHN, B.C. – LNG Canada has confirmed that it has awarded the contract to design and build its proposed liquefied natural gas export terminal in Kitimat to the joint venture comprised of U.S.-based Fluor Corp. and Japan-based JGC Corp.

In a post on its Facebook page, LNG Canada said that the contract is conditional on the project’s partners – Shell Canada, Mitsubishi, Kogas, and PetroChina – making a positive final investment decision. The company explained that the joint venture will – if the project proceeds – be responsible for directly hiring the majority of the thousands of workers required during the LNG terminal’s five-year construction period.

LNG Canada said that both firms have significant experience in Canada, combined with extensive LNG and mega-project experience. Fluor has nearly 70 years of Canadian project experience with over 7,500 construction personnel working on Canadian projects in 2017, while JGC has experience in construction of more than 48 LNG trains globally.

The commitments LNG Canada has made to ensure the project hires locally and within British Columbia, prior to hiring from the rest of Canada, will be executed by the joint venture. LNG Canada’s commitment to some positions being made available for apprentices — open equally to women and men — will also be delivered by its EPC contractor.

LNG Canada External Relations Director Susannah Pierce said that selecting an EPC contractor is a significant milestone for the project. She added that LNG Canada is working toward submitting a competitive decision-ready project to its Joint Venture Participants in 2018. The exact timing of the final investment decision is up to the Joint Venture Participants to make, and they will weigh their decision against a number of criteria, including project competitiveness, how the LNG Canada project fits within their existing portfolio of projects and investments, and available capital, amongst others.

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