Chinese yard kicks off Woodfibre LNG module work

Qingdao McDermott Wuchuan (QMW), a joint venture consisting of US contractor McDermott and China State Shipbuilding Corporation, has started building the first module for Canada’s Woodfibre LNG, a unit of Pacific Energy.

The module project has been officially launched in Qingdao on July 31, according to a statement by QMW.

QMW said it will build 18 modules totaling 34,359 MT for Woodfibre LNG and complete the project in the third quarter of 2025.

The scope of work includes module fabrication design, bulk material procurement, modules construction, mechanical completion and pre-commissioning, weighing, loading-out, and sea-fastening, it said.

In November 2021, Woodfibre LNG awarded the engineering, procurement, fabrication, and construction (EPFC) contract to McDermott.

After that, Woodfibre LNG issued a notice to proceed to McDermott in April last year to start work on its 2.1 mtpa LNG terminal near Squamish, British Columbia.

This notice to proceed is an instruction from Woodfibre LNG to McDermott to begin the work required in order to move the project toward major construction commencement in September 2023, the company said.

Woodfibre LNG said McDermott’s 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.

Enridge has 30 percent stake

In November last year, Canadian pipeline operator Enbridge completed the purchase of a 30 percent stake in Pacific Energy’s Woodfibre LNG.

Enbridge now has a 30 percent ownership stake in the Woodfibre LNG project, with Pacific Energy retaining the remaining 70 percent stake in the project.

The partners said at the time that the project “remains on track for its targeted in-service date of Q4 2027.”

The project has two long-term offtake agreements with BP Gas Marketing for 15 years representing 70 percent of the capacity.

Besides McDermott, Woodfibre LNG also awarded a contract to Siemens Energy to work on the all-electric plant.

(Article updated with a statement by Qingdao McDermott Wuchuan.)

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