A joint venture between Fluor and Yokohama, Japan-based JGC was selected in April as the engineering, procurement and construction contractor for LNG Canada’s proposed liquefied natural gas export facility in Kitimat, British Columbia. The approximately $14-billion project will include two LNG trains, each with the capacity to produce at least 6.5 million tons of LNG a year. The project, which is targeting Asian markets, could be expanded to four trains. In late May, PETRONAS, a Malaysian oil and natural gas company, reached a deal to take a 25% stake in the LNG Canada project. When the deal is complete, Shell Canada Energy will have a 40% stake, followed by subsidiaries of PetroChina at 15%, Mitsubishi at 15% and Korea Gas with 5%. Fluor expects the project owners to make a final investment decision late this year. If the project moves ahead, Fluor intends to make modules for the LNG plant at a fabrication yard in China it co-owns with a China National Offshore Oil subsidiary, a move Fluor says will reduce project risk. It will take about five years to build the project’s first two trains, according to LNG Canada.

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