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Shell getting serious about BC LNG

[JDavis17]

The Globe and Mail reports in its Friday edition that the head of Shell Canada says a prime contractor will be named next month for Shell-led LNG Canada as the co-owners take steps toward deciding whether to approve a $40-billion project to export liquefied natural gas from British Columbia. The Globe's Brent Jang quotes Michael Crothers as saying, "We're down to two short-listed bidders and we'll be down to one by mid-April." Two groups are in the running to serve as LNG Canada's prime contractor: TechnipFMC and KBR Inc.; and JGC Corp. and Fluor Canada Ltd. The contract will be for what the industry calls engineering, procurement and construction (EPC), including plans to build an export terminal in Kitimat in northwest British Columbia. Once a prime contractor is chosen, the winners will produce "finished bid documents," which will contain the latest information on the project's economics. "We hope to have a finished bid by the end of May. LNG Canada has estimated that it will cost up to $40-billion to construct the B.C. terminal and complete various infrastructure, including TransCanada's proposed $4.7-billion Coastal GasLink pipeline from northeastern British Columbia to Kitimat.