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.

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