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LNG Canada shortlists two EPC contractors for Kitimat LNG export facility

EBR Staff Writer Published 05 February 2018

Shell-led LNG Canada has shortlisted two engineering, procurement and construction (EPC) contractors for the proposed LNG export facility in Kitimat, British Columbia, Canada.

LNG Canada is a joint venture formed by Royal Dutch Shell affiliate Shell Canada Energy with 50% stake, affiliates of PetroChina with 20% interest, Korea Gas with 15% share, Mitsubishi with 15% interest.

The joint venture is planning to select the preferred EPC contractor for the Kitimat LNG export terminal project sometime in 2018.

The two shortlisted firm selected by LNG Canada include a joint venture of TechnipFMC and KBR (LNG BC Contractors), and the partnership of JGC and Fluor.

To determine the most commercially competitive proposal, the company intends to start negotiations immediately with the two EPC contractors. 

LNG Canada CEO Andy Calitz said: “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.”

The project, which will comprise two LNG units each with processing capacity of 6.5 million tons per annum (mtpa), would include an option to expand to four trains in the future.

The project partners delayed the final investment decision for the project in 2016, citing global industry challenges, including capital constraints.

At that time, LNG Canada said : “In the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision.” 

The firm said that it has used the delay period to issue an request for proposal (RFP) to pick a preferred EPC contractor willing to build the proposed LNG Canada project on a lump sum basis.