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.”

Egyptian LNG terminal is model for Kitimat project: Encana


The rugged, rocky, windswept shoreline of Douglas Channel and Kitimat harbour are very different from the Nile Delta, a gigantic flat estuary, so much bigger than the Kildala or Giltoyees, warm, on the Mediterranean, a cradle of human civilization.

KBR, the main contractor for the Kitimat LNG project front end engineering, is basing its planning  for the Kitimat terminal on a project it built in Egypt, Dave Thorn, Encana Vice President of  Canadian Marketing told an investor conference call on Tuesday, Oct, 4, 2011.

Thorn told the call that plans for the Kitimat terminal are based on the “Seagas” terminal in Damietta, (also known as Dumyat) Egypt,  60 kilometres west of Port Said on the Nile Delta.

The terminal is used to export liquified natural gas from fields in Egypt to customers in Spain.

In 2000,  what was then Haliburton KBR was given the contract for front-end engineering and design (FEED)  through a joint venture in Egypt,  Damietta LNG Construction Llc.  The joint venture later got the contract to build the LNG terminal complex.

The terminal is formally called SEGAS, an acronym for the Spanish Egyptian Gas Company.

 According to the Wikipedia entry,  the output capacity of the plant is 5 million tons of LNG per year.  The complex includes the LNG liquefaction train, inlet gas reception area (metering and analysis), natural gas liquids removal and fractionation area, a docking jetty for tanker loading and transportation, LNG refrigerated storage and export facilities (tanks and booms), utilities and supporting infrastructure (power, water and roads), gas metering and treatment facilities (acid gas removal and dehydration), refrigerant condensate and LNG storage (two 150,000 m³ PC LNG storage tanks). The total investment costs of the LNG complex were around US$1.3 billion.

Unlike Kitimat, where the natural gas will come from the Horn River Basin, the natural gas in Egypt is close to the terminal, in large fields under the Nile Delta.  The plant is supplied by natural gas from the West Delta Deep Marine  Concession Area about 140 kilometres (90 mi) from the LNG complex.

About 3.2 million tons of LNG is sold to  Unión Fenosa Gas which has a receiving terminal at Sagunto, Spain.  The rest is sold on the open market by the Egyptian Natural Gas Holding Company.

View Larger Map

In ancient history the port was known as Tarniat, It was later overshadowed by the growth of nearby Alexandria.  From seventh to the twelfth centuries, under Muslim caliphs, Diamietta was both an important naval base and an import point for goods from as far away as China. Today, in addition to the LNG terminal, it has a major container port.

KBR, formerly Kellogg Brown and Root has been involved in construction, mostly in the energy industry, for more than a century.   For many years the company was part of the Haliburton empire, but was spun off in 2007 and is now headquartered in Houston, Texas.
The company was recently involved in a number of scandals and lawsuits, mainly tied to its role as a prime contractor for the US military in Iraq.

Related link:  SEGAS Liquefied Natural Gas Complex, Damietta


Enhanced by Zemanta