On-Site Magazine

LNG Canada shortlists two contractors for B.C. export facility

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February 6, 2018 by Jillian Morgan

LNG Canada BC facility

The facility in Kitimat would initially consist of two LNG processing units, referred to as “trains,” each with the capacity to produce over six mtpa of LNG annually. It includes an option to expand to four trains in the future.

LNG Canada has shortlisted two engineering, procurement and construction (ECP) contractors to build a proposed LNG export facility in Kitimat, B.C.

Finalists include the partnerships of TechnipFMC plc-KBR and JGC-Fluor.

Negotiations between the two contractors to determine the most commercially competitive proposal will begin immediately.

The company intends to select its preferred contractor in 2018, a decision that was delayed in 2016. The preferred contractor will build the proposed project on a lump sum basis.

“While this is a significant milestone, work remains to be done to deliver a globally cost competitive project that is well positioned to take a final investment decision,” said Andy Calitz, CEO of LNG Canada. “We look forward to working closely with TechnipFMC plc and KBR, Inc.and JGC Corporation and Fluor Corporation to advance our project in British Columbia.”

LNG Canada prequalified four ECP consortia based on prior experience in LNG design and modularization, track record of project completion and experience with construction in Western Canada.

Proposal evaluation criteria included health and safety management, financial strength, technical design, execution plans, contract price and schedule.

The proposers also committed to living up to LNG Canada’s values and the commitments it has made to local communities, First Nations, as well as the company’s standards of social and environmental performance.

“This process is critical in LNG Canada’s pursuit of the level of competitiveness required to support a future final investment decision by our joint venture participants,” said Calitz. “A tremendous amount of time and effort has been invested by the four EPC consortia, as well as by LNG Canada’s internal review team.”

LNG Canada is a joint venture between Shell Canada Energy, affiliates of PetroChina, Korea Gas Corporation and Mitsubishi Corporation.


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