Fluor-JGC JV wins $14bn contract to build LNG Canada export facility

WCN Editorial Team 3 Oct 2018 NORTH AMERICA ENERGY & UTILITIES

A joint venture between Fluor and JGC Corporation has won a $14bn contract from LNG Canada to provide the engineering, procurement, fabrication and construction services for a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada.

Fluor stated that it will book its share, valued at $8.4bn, of the overall contract value in the fourth quarter of 2018.

Fluor chairman and CEO David Seaton said: “Fluor remains focused on delivering capital efficiency for our clients and we are excited that our joint venture team’s innovative solutions have helped to enable LNG Canada to achieve final investment decision.

“We are committed to closely collaborating with LNG Canada and the local community to deliver this project safely and sustainably and to meet client needs.”

The LNG export facility will liquefy surplus Canadian natural gas so that it can be safely exported to help meet global energy demands.

Initially, the project scope will comprise two liquefaction units (trains) for a total capacity of 14 million tonnes per year of LNG, with LNG Canada having the option to expand to four trains later.

Fluor Energy & Chemicals business group president Jim Brittain said: “Fluor delivered its first project in Canada in the 1940s, which was a refinery in British Columbia.

“Since then, Fluor has been a part of some of Canada’s most significant capital projects. We look forward to building LNG Canada’s facility and bringing lasting economic benefits to the local community and British Columbia.”

Over 4,500 workers are expected to be employed during the peak of construction. Fluor and JGC will begin site activities in 2018 and the first LNG is expected in the middle of next decade.

LNG Canada is a joint venture comprised of Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%) and Kogas (5%).

In April 2018, the Fluor joint venture with JGC was selected as the EPC contractor for LNG Canada’s LNG export facility in Kitimat.

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Image: An aerial view of the LNG Canada site in Kitimat, British Columbia, Canada. Photo: Courtesy of Fluor Corporation.

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