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News Release 2013
 
Project Info

22MAY2013

JGC Awarded FEED Contract for Large-Scale LNG Plant in Canada

- JGC's first foray into LNG projects in North America -
 

Yokohama JapanJGC Corporation announced today that in partnership with KBR (USA), it has received a contract calling for FEED (Front End Engineering and Design) and early detailed engineering work for a large-scale LNG plant to be built in the Canadian province of British Columbia. The contract was awarded by Pacific Northwest LNG Ltd., a joint venture consisting of Malaysia's state-owned oil company Petronas (90%), and Japan Petroleum Exploration Co., Ltd. (JAPEX) (10%).

The lump-sum contract calls for FEED and early detailed engineering work for a two-train LNG plant with a yearly capacity of 12 million tons (6 million tons per train), and associated shipping facilities. The plant will be constructed on Lelu Island, Prince Rupert, British Columbia, and the FEED work is scheduled for completion by the end of 2014.

The purpose of this project is to process shale gas produced from British Columbia's North Montney region into LNG suitable for export. In addition to the two 6-million ton trains, the plant is scheduled to include associated utilities, storage, loading, ship berthing and personnel accommodation facilities. JGC will be undertaking the project as part of a joint venture led by American engineering company KBR.

Client Pacific Northwest LNG has awarded FEED contracts to several other groups besides the JGC/KBR join venture. When FEED work is complete at the end of 2014, the client will select the contractor of its preferred FEED package for receipt of the EPC (engineering, procurement, and construction) portion of the project. The start of LNG production is schedule for the end of 2018.

Currently, there are multiple LNG projects utilizing shale gas planned for the North American continent. This project will be JGC's first LNG project undertaken in North America, and we hope very much that we will be able to continue to help contribute to the client's success by being selected for the EPC portion of the project, as well.

JGC has performed EPC work on a variety of projects for Petronas since the 1980's, and is currently performing EPC for an onshore LNG plant expansion project, as well as FEED work for a floating LNG project. With this new contract, we hope to further deepen the relationship of trust between Petronas and JGC.

To date, JGC has constructed LNG plants accounting for 30% of the world's total production capacity, and is currently involved in six new LNG plant construction projects in Australia, Indonesia, Malaysia, Papua New Guinea, and Russia, respectively. In addition, JGC is also performing FEED work for an onshore LNG plant in Mozambique, as well as offshore LNG plants in Indonesia and Malaysia. As a world-class LNG contractor, we plan to continue to promote and expand our activities in the future.



 

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