LNG Canada awards engineering contract for export terminal

Tue May 20, 2014 3:49pm EDT
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VANCOUVER May 20 (Reuters) - LNG Canada, a joint venture led by Royal Dutch Shell, said on Tuesday that it had awarded the design and eventual construction of its planned liquefied natural gas (LNG) export project on Canada's west coast to CFSW LNG Constructors.

The contract covers the front end engineering and design work, as well as the execution of the multi-billion dollar project, pending a final investment decision. That final go or no-go call is not expected until mid-decade.

LNG Canada is just one of more than a dozen export terminals planned for British Columbia's rugged Pacific coast, as energy companies look to ship cheap Canadian gas to Asia.

The project, to be built in the port town of Kitimat hundreds of miles north of Vancouver, will initially produce some 12 million tonnes of LNG per year and could be expanded to 24 million tonnes. An environmental assessment is underway.

Shell owns 50 percent of LNG Canada, while PetroChina Co Ltd holds a 20 percent stake, and Korea Gas Corporation and Mitsubishi Corp each own 15 percent.

CFSW LNG Constructors is a partnership of Chiyoda Co Ltd , Foster Wheeler, SAIPEM and WorleyParsons. (Reporting by Julie Gordon; Editing by Nick Zieminski)