Contract awarded for proposed $40B LNG plant in Kitimat

VANCOUVER — The international consortium behind plans for a liquefied natural gas terminal on British Columbia’s north coast has awarded the contract to design and build the proposed $40-billion project.

A statement from Texas-based Fluor Corp., said it and JGC Corp., based in Japan, have been approved as joint venture contractors for the engineering, procurement and construction of LNG Canada’s planned export facility in Kitimat.

The award of the estimated multibilliondollar contract is conditional on a positive final investment decision from the project partners led by Shell Canada, along with Mitsubishi Corp., Kogas, and PetroChina.

A post on LNG Canada’s Facebook page said if the Kitimat terminal moves forward, Fluor and JGC would be responsible for directly hiring the majority of the thousands of skilled workers required during the five-year construction period.

Fluor said its team’s design and execution strategy improves the competitiveness and predictability of the Kitimat project and positions LNG Canada for a final investment decision.

The final decision was delayed indefinitely by the consortium in 2016 because of a skid in global LNG prices.

In addition to construction of the Kitimat terminal, LNG Canada is looking to Trans Canada Corp. to build a proposed $4.7-billion Coastal GasLink pipeline to carry LNG from the gas fields of northeastern B.C. to the port for shipment overseas.

In March, B.C.’s New Democrat government offered new conditions and tax incentives for the province’s liquefied natural gas projects, including relief from provincial sales taxes, subject to repayment in the form of an equivalent operational payment.