British Columbia’s LNG Canada Project to Get EPC Bids Soon

LNG Canada, one of the few LNG export projects left on the Pacific Coast of Canada, will get a better idea of its cost in November when four consortia of contractors turn in their price bids to do the project’s engineering, procurement and construction (EPC). Those bids will have a big effect on whether any British Columbia export projects will be built any time soon, if at all.

Press reports have put a cost of C$40 billion ($31.6 billion) on the project. However, that cost covers more than what LNG Canada comprises, said LNG Canada CEO Andy Calitz. The project’s cost will not include upstream expenses, the pipeline that will deliver the gas or LNG shipping, a project official said. Each of the project’s partners –Shell (50%), Korea Gas (15%), Mitsubishi (15%) and PetroChina (20%) – will pay their own upstream costs, pipeline tariffs to deliver gas to the plant and shipping costs to deliver the LNG to markets. They will also pay a tariff to use the liquefaction plant. LNG Canada comprises only the facilities to be built at the site near Kitimat on the Douglas Channel – initially two liquefaction trains, LNG storage tanks, utilities and marine facilities.

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