Category: Flour Corp.

LNG Canada announces short list firms for procurement and construction contractors

 

LNG Canada today short listed two companies, LNG BC Contractors, a partnership of TechnipFMC plc and KBR, Inc. and the partnership of JGC Corporation and Fluor Corporation on the short list to build the proposed LNG Canada facility in Kitimat.

LNG Canada said their commercial negotiations to commence immediately

LNG Canada news release:

Vancouver, British Columbia, February 2, 2018 – Following a year-long request for proposal (RFP) process, LNG Canada announced it has notified two of its four potential engineering, procurement and construction (EPC) contractors that they have been shortlisted for the chance to build the company’s proposed LNG export facility in Kitimat, British Columbia.

LNG Canada intends to select the preferred EPC contractor sometime in 2018. Negotiations will begin immediately with the two EPC contractors to determine the most commercially competitive proposal.

LNG Canada identified the finalists as the partnership of TechnipFMC plc and KBR, Inc. (LNG BC Contractors), and the partnership of JGC Corporation and Fluor Corporation.

Following a decision to delay a final investment decision in 2016, LNG Canada used the delay period to issue an RFP to identify a preferred EPC contractor willing to build the proposed LNG Canada project on a lump sum basis. LNG Canada prequalified four EPC consortia based on several criteria, including prior experience in LNG design and modularization, track record of project completion, and experience with construction in Western Canada.

“This process is critical in LNG Canada’s pursuit of the level of competitiveness required to support a future final investment decision by our joint venture participants,” said Andy Calitz, CEO of LNG Canada. “A tremendous amount of time and effort has been invested by the four EPC consortia, as well as by LNG Canada’s internal review team, and I thank them all for their contributions to the RFP process thus far.”

LNG Canada’s proposal evaluation criteria included health and safety management, financial strength, technical design, execution plans, contract price and schedule. The proposers also committed to living up to LNG Canada’s values and the commitments it has made to local communities, First Nations, as well as the company’s high standards of social and environmental performance.

“While this is a significant milestone, work remains to be done to deliver a globally cost competitive project that is well positioned to take a final investment decision,” added Calitz. “We look forward to working closely with TechnipFMC plc and KBR, Inc. and JGC Corporation and Fluor Corporation to advance our project in British Columbia that will benefit the regional, provincial and national economy.”

Clio Bay reclamation postponed as new contractor takes over at KM LNG

Marine clay sign Robin Rowland photo
Sign explaining marine clay at the Chevron/ KMLNG Open House, in Kitimat, March 13, 2014. (Robin Rowland/Northwest Coast Energy News)

Studies on the Clio Bay reclamation project have been postponed until the fall while the new prime contractor takes over the Kitimat LNG project.

A spokesperson for Chevron said at the Kitimat LNG open house on Wednesday now that Irving , Texas-based Fluor Corp, in partnership with a joint-venture partner, Japan’s JGC Corp. has won the engineering, procurement and construction contract for the KM LNG project, it will take some time for the new company to be briefed on the Clio Bay project and then begin working with Stantec the environmental contractor on the project. That means that the reclamation project itself will now not likely proceed until spring of 2015.

In community meetings last fall, Chevron had said it expected the preliminary studies to be completed in January or February.

KM LNG, a partnership between Chevron and Apache Corp, took over the Riverlodge Recreation Centre for three days from February 2 to 4, to brief employees and contractors on the transition from KBR Inc., the original prime contractor which lost the bidding for the second stage of the contract to Flour.

KM LNG organized the open house mainly to show what is happening at the old Eurocan site, which is being converted to a work camp for the project.

The Clio Bay project, however, had a prominent place among the panels on display at Riverlodge. In the panels, Chevron says that up to 40 per cent of the Clio Bay bottom is covered with wood debris, at some points, as much as 10 metres deep, meaning a degraded habitat for dungeness crab and eel grass.

As was announced in the fall, Chevron, in partnership with the Haisla Nation, plan to take marine clay from Bish Cove and use it to cover the wood debris to create a new sea bottom. One panel said: “The new layer of marine clay is expected to be colonized by eel grass and by species such as worms, crustaceans, small fish and other sea life that will encourage a more plentiful, healthy ecosystem replacing the degraded ecosystem created by the decomposing wood debris that now covers the ocean floor.”

Chevron sees the project as an example that others could follow. Another panel notes: “Project proponents around the world are moving away from the old practice of dredging and disposing of marine clay. The Clio Bay restoration project would see marine clay used wisely to deliver benefits to the environment, community and culture.”

Work continues on the remediation of the old Eurocan mill site. Chevron and Apache are, in effect, spending millions of dollars to clean up the mess left behind when West Fraser abandoned the mill.

The company has to demolish the old mill and remediate contaminated areas. One of the big challenges is dealing with the old landfill site, which Chevron says has to be brought up to 21st century environmental standards. That includes adding an impermeable lining to the landfill and upgrading the leachate treatment systems.

Cleaning up the mess left by Eurocan will take about five years, according to one of the panels at the Open House. Chevron says that job will improve the environment, where they plan to build a work camp both in the short term and in the long term as work continues.