May 20, 2014

LNG Canada awards major contract; Engineering design work to commence

Vancouver, British Columbia – LNG Canada today announced that it has selected CFSW LNG Constructors as its main contractor for the proposed LNG export terminal in Kitimat, British Columbia. CFSW LNG Constructors is a partnership of Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons.

The contract covers Front End Engineering and Design (FEED) as well as project execution services, subject to a Final Investment Decision by LNG Canada. CFSW LNG Constructors will begin FEED activities for the LNG Canada project on June 1, 2014.

Representatives from LNG Canada, CFSW LNG Constructors, First Nations and the local government and community were on hand today in Kitimat to mark this project milestone.

“We are pleased to be working with Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons, a group of companies who together have extensive experience in the liquefied natural gas industry and Canada,” said Andy Calitz, CEO LNG Canada. “While this is a great step forward, a decision to build the facility is still some time away.”

“We will continue to work with the B.C. and Federal governments, First Nations communities in northwest B.C. and other stakeholders to develop a project that is economically viable and, if we take the decision to construct this project, it will be technically advanced, it will meet the high environmental standards expected of us, and it will create tremendous opportunity for the people of B.C. and Canada,” Calitz added.

“CFSW LNG Constructors is honoured to have been entrusted with this project,” says Koichi Shirakawa, Project Director of CFSW LNG Constructors. “The four partners remain committed to maintaining harmony between industry, the environment and the people of the Kitimat region and greater British Columbia. We look forward to working collaboratively with all local First Nations and other stakeholders to create employment opportunities and ensure a safe, responsible, world-class facility.”

CFSW LNG Constructors will lead the effort of hiring the general contractors who will organize and hire employees and businesses for the construction phase of the LNG Canada project.

The signing of the FEED contract is the first milestone for LNG Canada since the signing of the Joint Venture Agreement that created the operating entity LNG Canada Development Inc. on April 30 this year. While there is considerable work that still needs to be done prior to LNG Canada making a Final Investment Decision in a couple of years, the initial technical work has now been completed, land has been acquired, the Project Description has been submitted and the Environmental Assessment is currently underway.

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