LNG Canada awards major contract; Engineering design work to commence

VANCOUVER, May 20, 2014 /CNW/ - LNG Canada today announced that it has selected CFSW LNG Constructors as its main contractor for the proposed LNG export terminal in Kitimat, British Columbia. CFSW LNG Constructors is a partnership of Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons.

The contract covers Front End Engineering and Design (FEED) as well as project execution services, subject to a Final Investment Decision by LNG Canada. CFSW LNG Constructors will begin FEED activities for the LNG Canada project on June 1, 2014.

Representatives from LNG Canada, CFSW LNG Constructors, First Nations and the local government and community were on hand today in Kitimat to mark this project milestone.

"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 and Canada," said Andy Calitz, CEO LNG Canada. "While this is a great step forward, a decision to build the facility is still some time away."

"We will continue to work with the B.C. and Federal governments, First Nations communities in northwest B.C. and other stakeholders to develop a project that is economically viable and, if we take the decision to construct this project, it will be technically advanced, it will meet the high environmental standards expected of us, and it will create tremendous opportunity for the people of B.C. and Canada," Calitz added.

"CFSW LNG Constructors is honoured to have been entrusted with this project," says Koichi Shirakawa, Project Director of CFSW LNG Constructors. "The four partners remain committed to maintaining harmony between industry, the environment and the people of the Kitimat region and greater British Columbia. We look forward to working collaboratively with all local First Nations and other stakeholders to create employment opportunities and ensure a safe, responsible, world‑class facility."

CFSW LNG Constructors will lead the effort of hiring the general contractors who will organize and hire employees and businesses for the construction phase of the LNG Canada project.

The signing of the FEED contract is the first milestone for LNG Canada since the signing of the Joint Venture Agreement that created the operating entity LNG Canada Development Inc. on April 30 this year. While there is considerable work that still needs to be done prior to LNG Canada making a Final Investment Decision in a couple of years, the initial technical work has now been completed, land has been acquired, the Project Description has been submitted and the Environmental Assessment is currently underway. 

About LNG Canada 
LNG Canada is comprised of Shell Canada Energy (50%), an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina (20%), Korea Gas Corporation (15%) and Mitsubishi Corporation (15%). This operating entity is incorporated and registered under the federal laws of Canada.

The proposed LNG Canada project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas (LNG), including marine facilities in Kitimat, British Columbia.

LNG Canada will initially consist of two LNG processing units referred to as "trains," each with the capacity to produce six million tonnes of LNG annually, with an option to expand the project in the future to four trains.

LNG Canada's vision is to work collaboratively with First Nations, local community, and stakeholders, to deliver a project that is safe, reliable and reflective of community interests.

About CFSW
CFSW LNG Constructors (CFSW) is a joint venture between Chiyoda Canada Ltd. (a subsidiary of Chiyoda Corporation), Foster Wheeler Canada Ltd (a subsidiary of Foster Wheeler AG), Saipem Canada Inc (a subsidiary of Saipem S.p.A). and WorleyParsons Canada Services Ltd.

CFSW brings together the breadth of talent and deep experience of four world-class engineering and construction organizations that will deliver a safe and sustainable project. Jointly, CFSW offers unparalleled LNG design and execution know-how coupled with major operations in western Canada that will ensure long‑term opportunities for the Kitimat community, the Regional District of Kitimat-Stikine and greater British Columbia.

SOURCE LNG Canada

For further information: Media Contacts: LNG Canada, Kirsten Walker, media@lngcanada.ca, Mobile +1-604-603-4734; CFSW, Oliver Munar, Oliver.Munar@worleyparsons.com, Office +1 403 451 6038, Mobile +1 403 620 4602