Why this is important to Wisconsin businesses: Opportunities for Wisconsin companies to assist in the project
The LNG Canada project, which received approval in late 2018, involves building a liquefied natural gas (LNG) plant and a 670-kilometer pipeline to connect gas to the plant in Kitimat, British Columbia, with the goal of delivering LNG to Asia as demand grows to replace coal in power production. The venture is expected to start supplying customers with gas before 2025, and the expected delivery time to Tokyo from Kitimat will be eight days (versus 20 from the U.S. Gulf Coast).
LNG Canada is a joint venture company composed of five global energy companies with substantial experience in LNG—Shell, PetroChina, Korean Gas Company (KOGAS), PETRONAS and Mitsubishi Corporation. Together they will design, build and operate an LNG export terminal in Kitimat, British Columbia. The project was initially valued at approximately $40 billion and is one of the largest private infrastructure projects in Canada.
Construction of the first phase of project, which consists of two of four LNG processing units, or trains, will take approximately five years. Each train will have the capacity to produce at least 6.5 million tons per annum (mtpa) of LNG. The remaining two trains would be constructed during a second phase. Site preparation is slated to begin in Q2 2019.
Supplier opportunities can be found directly on the LNG Canada site. Additionally, the engineering procurement construction contract for the project has been awarded to JGC FLUOR BC LNG Joint Venture as the prime contractor, and supplier opportunities can also be found on the company’s website.
Additional background can be found at:
- Financial Post: https://business.financialpost.com/commodities/energy/update-3-massive-canada-lng-project-gets-green-light-as-asia-demand-for-fuel-booms
- JWN Energy: https://www.jwnenergy.com/article/2018/10/40b-lng-canada-project-officially-proceeding/
- Natural Resources Canada Project Overview: https://www.nrcan.gc.ca/energy/natural-gas/5683