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LNG Canada selects main contractor for proposed Kitimat project

LNG Canada representatives join CFSW LNG Constructors and local Kitimat dignitaries in an officially signing of LNG Canada awarding the FEED contract. - Cameron Orr
LNG Canada representatives join CFSW LNG Constructors and local Kitimat dignitaries in an officially signing of LNG Canada awarding the FEED contract.
— image credit: Cameron Orr

LNG Canada, the proposed liquefied natural gas export facility planned for Kitimat, has announced it has awarded its main contract to CFSW LNG Constructors.

CFSW is a consortium composed of Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons.

The contract incorporates the front end engineering and design (FEED) as well as project execution.

FEED studies will begin on June 1, the company says.

LNG Canada CEO Andy Calitz still emphasizes that the announcement is not a final investment decision, which is still “some time away.”

Representatives of LNG Canada and CFSW were on hand in Kitimat for the official signing of the agreements on May 20.

CFSW will lead the hiring of general contractors for the construction phase of the project as well.

The minister of natural gas development in B.C., Rich Coleman, released a statement following the announcement that this recent decision “is great news, moving the province closer to a new LNG export facility and the company another steop forward toward a final investment decision.”

He continued that, “Developing an LNG industry will result in some of the largest private-sector investments in British Columbia’s history, and will produce new economic activity for our communities, creating thousands of jobs for British Columbians.”

Meanwhile Mayor Joanne Monaghan, who joined others at LNG Canada’s Kitimat announcement, said the announcement last Tuesday was historic.

“It’s really nice that they made the announcement here in Kitimat because our community and our citizens are the ones who will be working with them,” she said. “So now we’re very glad that this step has happened, now we’re waiting for the final investment decision.”

The company has indicated it could be over a year before the company reaches the stage of making a final investment decision. Many LNG companies are waiting for the final tax framework to be arranged for LNG from the province.

LNG Canada is a joint venture of Shell Canada, PetroChina, KOGAS and Mitsubishi.

Earlier this month the partners officially incorporated LNG Canada into its own operating entity, LNG Canada Development Incorporate.

 

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