LNG Canada consortium awards FEED contracts on British Columbia exports

A joint venture comprised of Foster Wheeler, Chiyoda, Saipem and WorleyParsons was awarded a contract by LNG Canada for the provision of front-end engineering design (FEED) and project execution services for a proposed liquefied natural gas (LNG) export project in Kitimat, British Columbia.

The contract value was not disclosed, according to Foster Wheeler, which made the announcement late Tuesday. Foster Wheeler’s portion of the FEED phase will be included in the company’s second-quarter 2014 bookings.

The LNG Canada project is planned as a phased development initially comprising two processing trains, each with a production capacity of approximately 6 million tpy of LNG, with an opportunity for an additional two trains. 

“We are pleased to be working with Chiyoda, Foster Wheeler, Saipem and WorleyParsons, a group of companies who together have extensive experience in the liquefied natural gas industry,” said Andy Calitz, CEO of LNG Canada. 

“LNG Canada’s vision is to work collaboratively with First Nations, the local community and other stakeholders, to deliver a project that is safe, reliable and reflective of community interests, and I look forward to us working together to deliver this project’s expected benefits to the surrounding communities and all British Columbians," he added.

The release to proceed with the project execution phase is subject to regulatory approvals and a financial investment decision by LNG Canada, a milestone still a couple of years away.

“We are delighted to confirm the award for this major LNG liquefaction development in British Columbia," said Roberto Penno, CEO of Foster Wheeler's global engineering and construction business. "As part of the JV, Foster Wheeler brings proven experience in modular design, fabrication and construction for LNG facilities in remote and challenging locations. Together with our joint venture partners, we look forward to working towards the successful design and delivery of this landmark project.”

LNG Canada is comprised of Royall Dutch Shell (50%) and affiliates of PetroChina (20%), Korea Gas Corp. (15%) and Mitsubishi Corp. (15%). This operating entity is incorporated and registered under the federal laws of Canada.