The long-delayed Kitimat liquefied natural gas project in British Columbia got a boost in late April when LNG Canada selected Fluor Corp. and partner Yokohama-based JGC Corp. as the EPC contractor for the natural gas export-plant portion of the $40-billion development. Industry analysts expect Fluor’s portion of the award could be as much as $7 billion. LNG Canada would not confirm the oft-cited $14-billion price of the lump-sum contract.
The award is contingent on LNG Canada’s joint venture partners making a final investment decision, expected later this year, but selecting an EPC contractor is a significant milestone, says LNG Canada spokeswoman Susannah Pierce. LNG Canada delayed a final project decision in 2016 to find ways to reduce costs, she says. Joint venture participants include Shell, PetroChina, Korea Gas and Mitsubishi. Construction could begin late this year, with the plant coming on line in 2024.