LNG Canada Selects Fluor, JGC Joint Venture to Handle Early Engineering, Design on New Terminal Phase
A joint venture of engineering, procurement and construction (EPC) firms Fluor and JGC has been awarded a front-end engineering and design (FEED) contract for the second phase of a liquified natural gas terminal facility on the coast of British Columbia in western Canada.
The U.S. is the world’s top exporter of liquified natural gas (LNG) due to its production success recently in the shale plays such as the Marcellus and Bakken, while Canada also has deep oil and gas reserves particularly in the Alberta region. LNG is methane gas chilled to liquify and compress it and make it stable for shipping.
The LNG Canada terminal is on the Haisla Nation in Kitimat, British Columbia. The award follows the commissioning of Phase 1 with the recent shipment of the project’s LNG export cargo. The JGC Fluor JV has been delivering Phase 1 of the project by providing engineering, procurement, fabrication management, construction and commissioning services to build the facility and support safe startup.
The LNG Canada facility, located on Canada’s west coast, benefits from access to natural gas and an ice-free harbor. The plant has an annual production capacity of up to 14 million metric tons of LNG. It will operate under a 40-year license helping to reduce global greenhouse gas (GHG) emissions by replacing coal with natural gas.
A Phase 2 expansion is expected to increase the facility’s processing, storage and shipping capabilities. LNG Canada and its five joint venture participants continue to explore pathways to a Phase 2 expansion but have not yet reached a final investment decision.