Fluor, JGC score FEED job for LNG Canada expansion

Flour announced the FEED award in a statement on Friday, but it did not provide further information regarding the contract.

LNG Canada is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS.

It is Canada’s first large LNG export facility.

One of the largest private investments in Canadian history, the plant will initially produce 14 million tonnes per annum (mtpa) LNG for export.

With a proposed Phase 2 expansion, Shell and its partners plan to double the terminal’s capacity to 28 mtpa.

Fluor noted that this award follows the commissioning of Phase 1 with the recent shipment of the project’s first LNG export cargo.

Since 2018, the JGC Fluor JV has been “instrumental” in delivering Phase 1 of the project by providing critical engineering, procurement, fabrication management, construction, and commissioning services to build the facility and support safe startup, it said.

Ramp-up

LNG Canada’s production ramp-up is “very much” in line with what Shell had expected, Shell CEO Wael Sawan said on Thursday following a media report that the project is experiencing technical problems.

“We’re essentially churning out a cargo at the moment every eight days. And as we progress, the ramp-up of train one that moves to one every four days and so on and forth as you get into train two,” Sawan said.

“Suffice it to say, we are very pleased with the momentum that we’re seeing in LNG Canada and the work that the team is doing there. And very much looking forward to, as we get sort of over the next month or two to start to see train two as well ramping up,” he said.

Shell’s second-quarter presentation shows that shipping time from the LNG Canada facility in Kitimat to Asia is less than half that of US Gulf Coast projects.

An LNG carrier takes around ten days to deliver a cargo from LNG Canada to Asia, according to Shell.