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News » Canada » Two shortlisted for Kitimat LNG project » published 6 Feb 2018

Two shortlisted for Kitimat LNG project

LNG Canada has shortlisted two out of four engineering, procurement and construction (EPC) contractors competing to build its planned export facility in Kitimat, British Columbia.

Following a year-long request for proposal (RFP) process, LNG Canada has named the finalists as a partnership of TechnipFMC and KBR (LNG BC Contractors) and a partnership of JGC Corporation and Fluor Corporation. Commercial negotiations will begin immediately with the two shortlisted teams.

A decision was taken in 2016 to delay a final investment decision; LNG Canada used the delay period to issue a request for proposals (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.  

“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.

Initial cost estimates published in 2016 were put at between CA$25bn and CA$40bn for a four-train project.

LNG Canada intends to select the preferred EPC contractor sometime this year.

 

MPU

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This article was published on 6 Feb 2018 (last updated on 6 Feb 2018).

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