LNG Canada has selected the joint venture between JGC Corporation (JGC) and Fluor Corporation (Fluor) as its Engineering, Procurement and Construction (EPC) Contractor, based on the consortium’s value proposition including health, safety, First Nations and stakeholder management, financial strength, technical design, execution plans, contract price and schedule.
The contract award is conditional on LNG Canada’s Joint Venture Participants – Shell, PetroChina, Kogas and Mitsubishi Corporation — making a final investment decision, and is one component of the overall capital cost of the project.
The joint venture of JGC and Fluor has significant experience in Canada, combined with extensive LNG and mega project experience. Fluor has nearly 70 years of Canadian project experience with over 7,500 construction personnel working on Canadian projects in 2017, while JGC has experience in construction of more than 48 LNG trains globally.
JGC and Fluor will be responsible for directly hiring the majority of the thousands of skilled workers required during the five-year construction period. The commitments LNG Canada has made to ensure the project hires locally and within British Columbia, prior to hiring from the rest of Canada, will be executed by the EPC. LNG Canada’s commitment to some positions being made available for apprentices — open equally to women and men — will also be delivered by the EPC contractor.
Selecting an EPC contractor is a significant milestone for the LNG Canada project. LNG Canada is working toward submitting a competitive decision-ready project to its Joint Venture Participants in 2018. The exact timing of the final investment decision is up to the Joint Venture Participants to make, and they will weigh their decision against a number of criteria, including project competitiveness, how the LNG Canada project fits within their existing portfolio of projects and investments, and available capital, amongst others.