LNG Canada, a joint venture company comprised of four global energy companies, is in the planning stages of an LNG export terminal in Kitimat, British Columbia.

Final decision on LNG Canada expected by end of 2018

LNG Canada reports it has selected an engineering joint venture out of the United States and Japan to be the prime contractor for the $40 billion project that, if built, will export liquified natural gas from British Columbia.

Fluor Corp., of Irving Texas and JGC Corp., of Yokohama, Japan, announced on Friday that their joint venture proposal won the contract.  The job includes engineering, procurement and construction (EPC) for the LNG export terminal proposed for Kitimat, BC.

“The joint venture of JGC and Fluor has significant experience in Canada, combined with extensive LNG and megaproject experience,” Susannah Pierce, LNG Canada’s director of external relations, said in a statement.

She added “Fluor has nearly 70 years of Canadian project experience with over 7,500 construction personnel working on Canadian projects in 2017, while JGC has experience in construction of more than 48 LNG trains globally.”

LNG Canada is expected to make its final investment decision by the end of the year on whether to proceed with the first phase of construction.  The BC LNG project also requires TransCanada to build a $4.7 billion pipeline to carry gas from northeastern BC to Kitimat on the northwestern BC coast.

According to Fluor, LNG Canada is well-positioned to be globally competitive in the LNG market.

“We look forward to building on the strong relationships that LNG Canada has established with the local community. Our team is committed to developing this facility safely, sustainably and with lasting benefits for the local community and British Columbia,” said Jim Brittain, group president of Fluor’s energy and chemicals business in a news release.

LNG Canada has asked the federal Finance Department to exempt the project from tariffs on imports of Chinese and South Korean fabricated industrial steel components.  The group says it cannot wait years for Canadian fabricators to create a domestic industry in the Vancouver region to help with the construction of the large LNG modules.

LNG Canada is joint venture company comprised of four companies.  Royal Dutch Shell holds 50 per cent of the company, Kogas of South Korea and Mitsubishi Corp. each hold 15 per cent and PetroChina Co. Ltd. is a 20 per cent stake holder in the company.