Two contractors shortlisted to build LNG Canada’s Kitimat export plant

Shell-led LNG Canada said it had short-listed two international consortiums for the engineering, procurement and construction of its proposed liquefied natural gas export facility in Canada’s British Columbia.

LNG Canada said in a statement on Friday it has notified the partnership of TechnipFMC and KBR (LNG BC Contractors), and the partnership of JGC Corporation and Fluor Corporation that they have been shortlisted for the chance to build the company’s Kitimat facility.

This followed a year-long request for proposal (RFP) process and the two consortia have been shortlisted out of four bidders.

LNG Canada intends to select the preferred EPC contractor “sometime in 2018,” it said.

Talks will begin immediately with the two EPC contractors to determine the most commercially competitive proposal.

The LNG export project is expected to cost about CAD$40 billion ($32.2 billion), including the LNG plant in Kitimat, a new gas pipeline and upstream natural gas facilities.

The final investment decision for the project was delayed in 2016 by the project partners as they looked to reduce the cost in response low prices. Shell holds a 50 percent stake in the project, with other partners being PetroChina, Kogas and Mitsubishi Corporation.

The project has already received key regulatory approvals and completed key site preparation activities.

Following the FID delay in 2016, LNG Canada “used the delay period to issue an RFP to identify a preferred EPC contractor willing to build the proposed LNG Canada project on a lump sum basis.”

“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 Andy Calitz, CEO of LNG Canada.

“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,” added Calitz.

He went on to say that LNG Canada looks forward to working closely with the two consortia to advance the LNG export project in British Columbia that “will benefit the regional, provincial and national economy.”

LNG World News Staff