Artist’s rendering of LNG Canada’s proposed plant and shipping terminal at Kitimat. (LNG Canada)

U.S., Japanese-based firms named as prime contractor for B.C. LNG plant

In March, B.C.’s government offered new conditions, tax incentives for liquefied natural gas projects

The international consortium behind plans for a liquefied natural gas terminal on British Columbia’s north coast has awarded the contract to design and build the proposed $40-billion project.

A news release from Texas-based Fluor Corp., says it and JGC Corp., based in Japan, have been approved as joint venture contractors for the engineering, procurement and construction of LNG Canada’s planned export facility in Kitimat.

The award of the estimated multibillion-dollar contract is conditional on a positive final investment decision from the project partners led by Shell Canada, along with Mitsubishi Corp., Kogas, and PetroChina.

A post on LNG Canada’s Facebook page says if the Kitimat terminal moves forward, Fluor and JGC would be responsible for directly hiring the majority of the thousands of skilled workers required during the five-year construction period.

Fluor says its team’s design and execution strategy improves the competitiveness and predictability of the Kitimat project and positions LNG Canada for a final investment decision.

The final decision was delayed indefinitely by the consortium in 2016 because of a skid in global LNG prices.

In addition to construction of the Kitimat terminal, LNG Canada is looking to TransCanada Corp. to build a proposed $4.7-billion Coastal GasLink pipeline to carry LNG from the gas fields of northeastern B.C. to the port for shipment overseas.

READ MORE: Kitimat is one step closer to securing LNG plant

READ MORE: Australian company Woodside ends Grassy Point LNG project

In March, B.C.’s New Democrat government offered new conditions and tax incentives for the province’s liquefied natural gas projects, including relief from provincial sales taxes, subject to repayment in the form of an equivalent operational payment.

LNG projects would also be subject to new greenhouse gas emission standards and would have to pay general industrial electricity rates consistent with other industrial users in B.C., but the framework would repeal an LNG income tax introduced under the B.C. Liberals.

The Canadian Press

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