Fluor JV lands FEED contract for historic US$40bn Canadian LNG project

An LNG Canada facility in Kitimat, British Columbia, Canada. Image: LNG Canada

The JV, which led delivery of the facility’s recently completed first phase, will now begin detailed design work for the expansion project. During Phase 1, the JGC Fluor JV supplied engineering, procurement, fabrication, construction and commissioning services, using more than 215 prefabricated modules shipped to site to help reduce risk and cost.

The first phase of the LNG Canada project is estimated to cost around US$31 billion. An investment figure for Phase 2 was not available. The scope of works in Phase 2 could cost more than $10 billion, bringing the total project value to more than $40 billion, which is said to be the largest private infrastructure investment in Canadian history.

The project owner, energy consortia LNG Canada, said the Phase 2 FEED contract was awarded based on the joint venture’s performance during the initial build, which saw its first LNG export cargoes ship earlier this year. LNG Canada is comprised of energy and industrial firms Shell (40% stake), Petronas (25%), PetroChina (15%), Mitsubishi (15%) and KOGAS (5%).

The proposed second phase would effectively double the facility’s capacity, expanding it beyond the current 14-million tonnes-per-annum. The FEED award includes work on process units, utilities, storage tanks, shipping systems and other associated infrastructure.

With Phase 1 construction completed in June, construction could start (pending approvals) on Phase 2 as early as this year. Full completion is scheduled for 2028-29.

Venture Global makes final investment decision on $15.1 billion CP2 LNG project CP2 to deliver 28 MTPA of LNG as company hits milestone in Louisiana Gulf Coast expansion