Fluor Corporation and JGC Holdings Win FEED Contract for LNG Canada Expansion
A joint venture between Texas-based engineering firm Fluor Corporation and Japan’s JGC Holdings Corporation has secured the front-end engineering and design (FEED) contract for the proposed enlargement of the liquefied natural gas (LNG) facility located in Kitimat, British Columbia, Canada.
Following their successful bid for the engineering, procurement, and construction (EPC) contract for Phase 1 of the LNG Canada project in 2018, the partnership has now been tasked with updating the FEED for the proposed Phase 2 of the plant.
Mike Alexander, Fluor’s Business Group President of Energy Solutions, expressed excitement about the continued collaboration with LNG Canada, stating, “We commend the LNG Canada team for its foresight and commitment to the energy transition by providing natural gas, a lower-carbon energy alternative, to global markets.”
While the project’s five joint venture participants – Shell, PetroChina, KOGAS, Mitsubishi, and Petronas – are exploring pathways to Phase 2, no final investment decision (FID) has been reached as of yet.
The recent commissioning of Phase 1 saw the export of initial LNG cargoes, with ongoing loading activities reported on July 30, highlighting the project’s progress.
Expansion Plans and Environmental Impact
The LNG Canada facility, situated on the west coast of Canada, currently has an annual production capacity of up to 14 million tonnes of LNG from its two trains. A Phase 2 expansion would further enhance processing, storage, and shipping capabilities with the addition of two more trains.
As the first facility of its kind in Canada, LNG Canada aims to position the country as a significant player in the LNG export market. Operating under a 40-year license, the plant is expected to contribute to global efforts in reducing greenhouse gas (GHG) emissions by replacing coal with natural gas.
Notably, the plant’s GHG intensity is projected to be 35% lower than existing top-performing LNG plants worldwide and approximately 60% below the global average, showcasing its commitment to environmental sustainability.
With the FEED contract now in place, Fluor Corporation and JGC Holdings are set to play a pivotal role in advancing the LNG Canada project and shaping the future of LNG production in Canada.