Asian-owned Woodfibre LNG project in Canada signs complete engineering contract with McDermott of US

Wednesday, 24 November 2021
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Woodfibre LNG, the mid-scale project near the town of Squamish in British Columbia, has signed an engineering, procurement, fabrication and construction (EPFC) contract with Houston, Texas-based McDermott International.

McDermott said the EPFC contract was an important step in advancing detailed engineering and construction schedules in advance of Woodfibre LNG issuing a notice to proceed.

The proposed Woodfibre plant is owned by Pacific Energy Corp., a subsidiary of founder Sukanto Tanoto’s Royal Golden Eagle Group and whose main offices are in Singapore, Jakarta, Beijing and Hong Kong.

The Woodfibre project comprises a single liquefaction Train with 2,1 million tonnes per annum of LNG production and storage capacity of 250,000 cubic metres.

“Woodfibre LNG will use hydro-electricity for the main liquefaction process, and will include technology that enables liquefaction machinery to restart without flaring, a recycling system for boil-off gas, along with additional transformers, switchgear and transmission lines,” said a statement.

Woodfibre LNG already has two offtake agreements signed with UK major BP, meaning over 70 percent of Woodfibre's annual throughput has been sold.

“Our contract with McDermott is a positive step forward for this substantial piece of clean-energy infrastructure,” said Christine Kennedy, President of Woodfibre LNG.

Squamish nation

Woodfibre has engaged with the Canadian Squamish First Nation in designing the environmental aspects of the facility

“Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world,” added Kennedy.

McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG's Impact Benefit Agreements with the Squamish Nation.

It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction.

“The EPFC contract commits McDermott to Woodfibre LNG's hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then other Canadians,” the statement added.

Chief Operating Officer of McDermott, Samik Mukherjee, said the Woodfibre award was an opportunity to further demonstrate the company’s LNG and modularization expertise.

In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services.

“Pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023 when major construction is targeted to begin,” added Mukherjee.

Woodfibre LNG is expected to enter commercial service by the third quarter of 2027. 

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