On Tuesday, LNG Canada — a Shell-led joint venture that includes Petronas, Mitsubishi Corp. and Korea Gas Corp. — has awarded the joint venture of Fluor and Japan-based JGC Corp. a $14 billion contract.

The companies will build a liquefied natural gas export facility in Kitimat, British Columbia. Thus, Fluor books an $8.4 billion share of the contract, meanwhile JGC’ gets $5.6 billion.

Fluor and JGC will supply engineering, procurement, fabrication and construction services to the project. It covers building two independent liquefaction units with the probability to add on two more.

The plant will run at the lowest carbon-intensity of any large-scale LNG facility in the world.
LNG Canada expects to launch processing at the export terminal in the mid-2020s. Site work is apt to begin in the last quarter this year.

Insider Tips

Plants or pipeline projects create opportunities for workers outside of major areas since construction usually takes place in remote areas. Nevertheless, that fact may also become a sticking point. Contractors might not be able to hire the necessary number of workers, especially during the current overfull employment.

Besides, qualified employees are totally thin on the ground. During a recent work stoppage on the Atlantic Coast Pipeline from West Virginia to North Carolina, project executives allegedly kept employees on the payroll instead of laying them off. Thus the employees would not be lost to competitors. At the same time, during a work stoppage on the Mountain Valley Pipeline, the company fired approximately 50% of its workers.