Wison scoops FEED work on Western’s FLNG project in Canada

Wison Offshore & Marine and Western LNG have entered into a technical service agreement (TSA) regarding a new floating liquefied natural gas project being developed by Western in British Columbia, Canada.

Winson said on Friday that it would develop the basis of design (BOD) and carry out front-end engineering design (FEED) for the FLNG to be sited at the proposed facility.

Western has also agreed to the appointment of Wison as the EPC service provider for the floating liquefaction plant upon project FID.

Under the terms of the TSA, Wison will provide a cost competitive FEED package based on the successful delivery of the Caribbean FLNG. The FEED is expected to be completed in less than 40 weeks after the BOD is finalized.

Western’s initial project in British Columbia will bring abundant and low-cost Canadian natural gas from the Montney, Horn River, and other Western Sedimentary basins to rapidly growing markets in northeast Asia.

The company’s development activities are supported by certain funds managed by affiliates of Apollo Global Management, an international investment company with more than $245 billion in assets.

The company said that the TSA was a significant step towards commercialization of the project based on joint studies by Western and Wison, who also expect to leverage this solution for a number of additional FLNGs.

Last year, Wison successfully delivered the Caribbean FLNG on an EPC basis after liquefaction performance testing for the facility in its yard in China.

Ying Cui, CEO of Wison, said: “Given the challenging market condition, cost-effectiveness and reliability of liquefaction infrastructure are key to the viability of developing LNG projects, and this is where Wison meets the requirements from project owners. We are keen to work alongside clients to monetize gas resources with satisfactory investment returns.”

Davis Thames, Western’s president and CEO, added: “It was clear to us last year that Wison’s highly successful Caribbean FLNG project, constructed on time and on budget, marked a milestone in the development of low cost, mid-scale liquefaction solutions.

“The team at Western, with the support of Apollo, is looking forward to continuing work with Wison and our other partners to successfully deliver a mid-scale greenfield LNG export facility with costs per tonne in line with much larger brownfield facilities on the U.S. Gulf Coast. Combined with the availability of abundant, low-cost gas in western Canada and geographic proximity to the largest LNG market in the world, Western’s delivered costs will compare favorably to other low-cost LNG suppliers from around the world.”