Artist’s rendering of LNG Canada’s proposed plant and shipping terminal at Kitimat. (LNG Canada)

U.S., Japanese-based firms named as prime contractor for B.C. LNG plant

In March, B.C.’s government offered new conditions, tax incentives for liquefied natural gas projects

The international consortium behind plans for a liquefied natural gas terminal on British Columbia’s north coast has awarded the contract to design and build the proposed $40-billion project.

A news release from Texas-based Fluor Corp., says it and JGC Corp., based in Japan, have been approved as joint venture contractors for the engineering, procurement and construction of LNG Canada’s planned export facility in Kitimat.

The award of the estimated multibillion-dollar contract is conditional on a positive final investment decision from the project partners led by Shell Canada, along with Mitsubishi Corp., Kogas, and PetroChina.

A post on LNG Canada’s Facebook page says if the Kitimat terminal moves forward, Fluor and JGC would be responsible for directly hiring the majority of the thousands of skilled workers required during the five-year construction period.

Fluor says its team’s design and execution strategy improves the competitiveness and predictability of the Kitimat project and positions LNG Canada for a final investment decision.

The final decision was delayed indefinitely by the consortium in 2016 because of a skid in global LNG prices.

In addition to construction of the Kitimat terminal, LNG Canada is looking to TransCanada Corp. to build a proposed $4.7-billion Coastal GasLink pipeline to carry LNG from the gas fields of northeastern B.C. to the port for shipment overseas.

READ MORE: Kitimat is one step closer to securing LNG plant

READ MORE: Australian company Woodside ends Grassy Point LNG project

In March, B.C.’s New Democrat government offered new conditions and tax incentives for the province’s liquefied natural gas projects, including relief from provincial sales taxes, subject to repayment in the form of an equivalent operational payment.

LNG projects would also be subject to new greenhouse gas emission standards and would have to pay general industrial electricity rates consistent with other industrial users in B.C., but the framework would repeal an LNG income tax introduced under the B.C. Liberals.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

B.C. Green Party pushes for wild salmon commissioner

The role would serve as a unifying force in the provincial government

BC Ferries confirms Northern Sea Wolf will not sail until mid-July

BC Ferries had hoped to get the vessel in September of last year, but it didn’t arrive until December

UPDATED: Horgan says B.C. defending its interests in Trans Mountain pipeline

Canadian finance minister’s update comes the same day Kinder Morgan shareholders plan to meet

5 things to know about B.C. Floods 2018

Snowpacks continue to melt causing thousands to be displaced, dozens of local states of emergency

VIDEO: After the floods, comes the cleanup as Grand Forks rebuilds

Business owners in downtown wonder how long it will take for things to go back to normal

UPDATED: BC Ferries will freeze plans to nix fuel rebates pending government funds

Claire Trevena says she is ‘extremely disappointed’ by a plan by BC Ferries to remove fuel rebates

B.C. sues Alberta over bill that could ‘turn oil taps off’

Lawsuit is the latest move in the two provinces’ ongoing feud over the Kinder Morgan pipeline

Liberal government introduces measures to update Canada’s family laws

Justice officials say there have not been substantial updates to federal family laws in 20 years

B.C. mom threatens legal action against sunscreen company

Caleb Jordan, 6, was covered in blisters 20 minutes after using Banana Boat sunscreen

BC Games Society president to step down

Kelly Mann says it’s time for a change after 26 years with the society

B.C. politicians framed by anonymous sticky-note doodler

Insider has been posting caricatures from the B.C. legislature to social media

27 years since initial police probe, polygamist leader to be sentenced in June

Prosecutor recommend up to 6 months jail, defence asks for conditional or absolute discharge

Governments kick in cash for B.C. farmers, food processors

Ottawa, Victoria contribute $14 million over five years to help develop new products, processes

Most Read