Canadian Manufacturing

LNG Canada selects main contractor for proposed export facility

Partnership between Chiyoda Corp., Foster Wheeler Ltd., Saipem S.p.A. and WorleyParsons selected

VANCOUVER—The consortium behind a proposed liquefied natural gas (LNG) export facility in British Columbia has chosen its main contractor for the massive project.

According to LNG Canada, it has selected CFSW LNG Constructors, a partnership between subsidiaries of Japan-based engineering firm Chiyoda Corp., England’s Foster Wheeler Ltd., Italy’s Saipem S.p.A. and consulting firm WorleyParsons, as the main contractor for its proposed LNG export terminal in Kitimat, B.C.

The contract with CFSW covers front end engineering and design (FEED) and “project execution services.”

Financial terms of the deal were not disclosed.

“We are pleased to be working with Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons, a group of companies who together have extensive experience in the liquefied natural gas industry and Canada,” LNG Canada chief executive Andy Calitz said in a release.

While the agreement with CFSW is “a great step forward,” Calitz noted a decision on whether to build the facility “is still some time away.”

Signing the FEED contract is the first milestone for LNG Canada since it inked a joint venture agreement last month with Shell Canada Ltd., PetroChina Co. Ltd., Korea Gas Corp. and Mitsubishi Corp.

LNG Canada said the final investment decision is still “a couple of years” away, though land has been acquired should the project proceed.

An environmental assessment is currently underway.

“We will continue to work with the B.C. and federal governments, First Nations communities in northwest B.C. and other stakeholders to develop a project that is economically viable and, if we take the decision to construct this project, it will be technically advanced, it will meet the high environmental standards expected of us, and it will create tremendous opportunity for the people of B.C. and Canada,” Calitz added.

The proposed facility would have the capacity to produce 12 million tonnes of LNG annually.

FEED activities are expected to kick off next month.

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