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News Release2018

Oct. 02, 2018

Finalization of Contract for EPC of
Large-Scale Canadian LNG Plant

Yokohama, Japan – JGC Corporation announced today that on 1st October LNG Canada took its Final Investment Decision (FID) for a large-scale LNG plant in Kitimat, British Columbia, Canada.  The joint venture of JGC and Fluor Corporation will perform the engineering, procurement and construction (EPC) of the plant.  JGC will book its US$ 5.6 billion share of the approximate US$ 14 billion contract value in the third quarter of fiscal 2018.

“The LNG Canada project is one of the largest projects ever awarded to JGC, a leading global contractor.  JGC will draw on its accumulated capabilities and track record of successfully delivering LNG plant construction projects,” said Tadashi Ishizuka, JGC’s Representative Director, President and COO.

LNG Canada is a joint venture comprised of Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.

The new plant will initially consist of two LNG liquefaction units, or trains, for a total of approximately 14 million tonnes per annum (mtpa).  LNG Canada’s export plant has been designed to achieve the lowest carbon intensity of any large-scale LNG plant operating in the world today.  Start of production is expected before the middle of the next decade.

It was announced by JGC on 1st May of this year that LNG Canada had selected the joint venture of JGC and Fluor as the EPC contractor for the project.  Since then, discussions have been furthered to finalize the project execution plan in preparation for FID.  At the same time, the member companies of the LNG Canada joint venture respectively worked toward FID approval.  In light of the progress made in these preparatory phases, LNG Canada has announced its FID on the project.

Additional supply of LNG is expected to be needed in the first half of the next decade as a result of increasing demand, particularly from Asia, which is anticipated to drive the need for production.  As construction of a new plant typically takes between four and five years, FIDs for LNG plants planned by the major oil companies and others, as well as the selection of EPC contractors, are seen as being taken in the years 2018, 2019 and beyond.

JGC has an unrivalled record for its construction of 30% of the world’s LNG plants.  Based on the company’s performance as the top contractor in the field of LNG plants, it is the intention of JGC to pursue vigorous sales efforts and continuously contribute to development of the LNG market.

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