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.

Most Popular

Samsung Heavy nets first LNG carrier order in 2025

Samsung Heavy said on Monday that it will build the LNG carrier for an unidentified owner in Oceania. The shipbuilder...

Golar’s Macaw produces first LNG at small liquefaction unit in Texas

Macaw announced in a social media post on Wednesday it achieved its first LNG from stranded flare in Texas...

Third Plaquemines LNG cargo heads to Europe

The 2021-built 174,000-cbm, Isabella, was on Friday located in the North Atlantic Ocean, offshore Bahamas, after picking up a...

More News Like This

Shell expects ‘significantly lower’ LNG trading results in Q4

Shell announced this in its fourth-quarter update note on Wednesday. "Trading and optimization results are expected to be significantly lower...

Shell gets first cargo under new Oman LNG deal

Oman LNG announced the shipment via social media on Tuesday. Howveher, the firm did not provide any further details regarding...

Peru LNG boosts shipments in 2024

A spokesman for Hunt Oil told LNG Prime that in 2024 "there were 57 vessels equivalent to 205 TBtus,"...

Northern Lights welcomes second LNG-powered LCO2 carrier in its fleet

The second Northern Lights JV’s LNG-powered liquefied CO2 carrier has been delivered in China. Northern Lights, the JV consisting of...