Shell’s LNG Canada almost 28 percent complete

The Shell-led LNG Canada development is moving forward despite disruptions caused by the Covid-19 pandemic. The total project progress reached about 27.5 percent, according to the main contractor Fluor.

To remind, Fluor and partner JGC hold the engineering, procurement and construction contract on the LNG export project worth more than $30 billion.

Following the FID by Shell and partners back in October 2018, the duo started working at the project site in Kitimat.

The two firms continued to perform works until March this year when they were forced to downsize the workforce by half due to the pandemic.

“In keeping with the local regulations, we had a considerable workforce reduction in mid-March, but work with the provincial governments, multi-phase reached our plant to resume activities,” Fluor chief executive Carlos Hernandez said during a recent investor call

“We’re pleased to report that our workforce is now back where it was before the drawdown, and we expect to increase it to 2,500 on-site by the end of 2020,” he said.

However, these events have caused delays within the giant LNG project.

“LNG Canada is, it is behind because of the pandemic,” Hernandez said, adding that the JV was in talks with Shell regarding the timeline.

Hernandez did not provide any additional information regarding the delays. But, according to LNG Canada, they will not affect the first LNG shipment expected in the middle of the decade.

“Works progressing well”

Despite Covid-19, works on the Kitimat site have been progressing “very well,” Hernandez said.

According to the CEO, the project is about 27.5% complete. This is on an overall basis and observed from the engineering, procurement, construction, and fabrication point of view.

“Now, obviously, that’s not construction, construction is less than that. But, we’re comfortable with the progress that has been made to date,” he said.

Shell's LNG Canada almost 28 percent complete (2)
Image: Fluor

Looking at recent milestones, the JGC Fluor team reached first concrete pour for the base of the LNG storage tank.

Once complete, the 225,000-cbm tank will be approximately 60 meters tall and 100 meters in diameter.

Besides Shell, LNG Canada partners include Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation and Kogas of South Korea.

LNG Canada will initially include two trains with the capacity to produce 14 million tonnes of LNG per year.

- Advertisements -

Most Popular

South Korean yards built 500 LNG carriers for export in 30 years

South Korean yards have completed 500 liquefied natural gas (LNG) tankers for export since 1994, according to the Ministry...

MARAD: Delfin needs to submit amended application for FLNG project

The US Maritime Administration (MARAD) said that Delfin LNG needs to file an amended application for its floating LNG...

TotalEnergies takes FID on Marsa LNG bunkering project in Oman

French energy giant TotalEnergies has taken a final investment decision on the Marsa LNG bunkering project in Oman. Technip...

More News Like This

Shell launches largest bio-LNG plant in Germany

A unit of LNG giant Shell has launched what it says is the largest bio-LNG production plant in Germany. The...

Oman LNG inks 10-year SPA with Shell

State-owned producer Oman LNG has signed a 10-year sales and purchase agreement with a unit of LNG giant Shell. Under...

Shell expects ‘strong’ LNG trading results in Q1

LNG giant Shell is expecting “strong” trading and optimization results for its integrated gas business in the first quarter...

Peru LNG terminal sent five cargoes in March

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in March, one shipment more...