LNG Canada lets FEED, project execution contracts

LNG Canada Development Inc. let a front-end engineering and design contract and project execution services contract to Foster Wheeler AG subsidiary Global Engineering & Construction Group in joint venture with affiliates of Chiyoda Corp., Saipem SPA, and WorleyParsons Ltd., for its proposed LNG Canada export project in Kitimat, BC.

LNG Canada plans the export project as a phased development initially comprising two, 6-million tonne/year (tpy) processing trains, with an opportunity for two additional trains. Project timing depends on regulatory approvals and a final investment decision by LNG Canada not expected before 2016. LNG Canada received approval from the National Energy Board last year to export as much as 24 million tpy for 25 years.

Foster Wheeler included its portion of the FEED phase in its second-quarter 2014 bookings without disclosing cost.

LNG Canada partners are Royal Dutch Shell PLC affiliate Shell Canada Energy 50%, and affiliates of PetroChina 20%, Korea Gas Corp. 15%, and Mitsubishi Corp. 15%.

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