Woodfibre LNG taps McDermott to build Canadian export plant

Canada’s Woodfibre LNG, a unit of Pacific Energy, has contracted Houston-based McDermott to build its 2.1 mtpa LNG terminal in British Columbia.

Under the engineering, procurement, fabrication, and construction (EPFC) contract, McDermott would manage onshore construction of the facility located about 7 km west-southwest of Squamish.

“The EPFC contract is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed,” the firm said in a statement on Tuesday.

Woodifibre LNG says McDermott’s NetZero Modular LNG strategy has been fully utilized during the development of this onshore gas processing and liquefaction facility with floating storage of about 250,000 cbm near Squamish.

The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions, it said.

Moreover, the facility will use hydroelectricity for the main liquefaction process, and includes technology that enables liquefaction machinery to restart without flaring, a recycling system for boil-off gas, and additional transformers, switchgear and transmission lines.

Completion in 2027

McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG’s impact benefit agreements with the Squamish Nation.

Woodfibre LNG expects that 650 people would be working on the LNG site at peak construction.

The EPFC contract commits McDermott to Woodfibre LNG’s hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians, it said.

In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services.

According to Woodfibre LNG, pre-installation work for the project would begin in early 2022 and would gradually ramp up to September 2023, when the firm expects major construction to starts.

Major works would continue through to substantial completion, expected in the third quarter of 2027, it said.

The firm has last year postponed the final investment decision on the project due to the Covid-19 pandemic.

Earlier this year, Woodfibre LNG signed a second supply deal with a subsidiary of energy giant BP for volumes from its planned export plant.

Under the deal, BP Gas Marketing will receive 0.75 million tonnes per annum of LNG over 15 years on a free on board (FOB) basis.

This latest deal will increase BP’s total LNG offtake to 1.5 MTPA, over 70 percent of Woodfibre’s future annual production, the firm previously said.

- Advertisements -

Most Popular

Cedar LNG FID pushed back

Canada’s Pembina Pipeline and the Haisla Nation have again postponed a final investment decision on their Cedar floating LNG...

Hyundai Samho to build LNG carrier quartet for $1.08 billion

South Korea's Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.08...

Eni to ship Congo’s first LNG cargo

Italy’s Eni will soon ship the first liquefied natural gas cargo from its Tango floating LNG facility moored in...

More News Like This

Canada’s Woodfibre LNG awards accommodation vessel contract

Canada’s Woodfibre LNG, a unit of Pacific Energy, has awarded a contract to Bridgemans Services to provide on-site workforce...

Allseas’ giant vessel to complete pipelay job for BP’s Tortue FLNG project

UK-based energy giant BP has selected Swiss-based offshore contractor Allseas to complete the subsea pipelay scope for the Greater Tortue...

Canada’s Woodfibre LNG seals third supply deal with BP

Canada’s Woodfibre LNG, a unit of Pacific Energy, has signed the third supply deal with UK-based energy giant BP...

Canada’s Woodfibre to start work on $5.1 billion LNG export plant in September

Canada’s Woodfibre LNG, a unit of Pacific Energy, confirmed that it plans to start construction work next month on...