LNG

Fluor Corp. of US and Japan’s JGC Corp. of Japan have completed the final weld on first liquefaction Train at the LNG Canada joint venture at Kitimat on the Pacific Coast province of British Columbia.

TC Energy, the leading North American natural gas pipelines operator, is moving to complete final works surrounding the link to the LNG Canada project in British Columbia while selling a pipeline gas connection to a First Nation-run venture amid an increase in US natural gas flows.

TC Energy Corp., whose main current project is the building of the Coastal GasLink pipeline for the LNG Canada venture, has agreed to sell 40 percent stakes for C$5.2 billion (US$3.9Bln) in the two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, the transporters of substantial US LNG feed-gas volumes.

Stonepeak, the New York-based investment firm specializing in energy infrastructure, has completed the acquisition of a 50 percent interest in the Key Access Pipeline System (KAPS), a Canadian natural gas liquids pipeline that will impact future feed-gas needs for LNG exports from Western Canada.

A First Nation-led liquefied natural gas export project proposed for near the port of Prince Rupert on the northern Pacific coast of British Columbia has been awarded a 40-year natural gas export licence.

Police in the Canadian province of British Columbia said environmental extremists have carried out a violent attack on a project site of the Coastal GasLink LNG feed-gas pipeline for LNG Canada.

TC Energy, the North American pipelines group, posted lower net income amid higher revenues as a dispute continued with the LNG Canada project over the Coastal GasLink feed-gas from the Montney Shale.

Canadian company Énergir and the Québec Port Authority have completed their 100th liquified natural gas re-fuelling operation as the French-speaking province embraces maritime bunkering, though rejects LNG production for export.

“This major achievement is a testament to both companies’ leadership to supply the maritime industry in LNG, and to their expertise in bunkering operations in Canada,” said Énergir, the main gas distribution company in the province.

The bunkering takes place in or around the port of Québec City, which sits on the Saint Lawrence River and is the oldest Canadian port and the second-largest after Montreal.

The LNG bunkering station, implemented by Énergir’s subsidiary, Gaz Métro Transport Solutions in 2018, is available to all shipowners passing through.

“These 100 LNG bunkers completed at the Port of Québec have supplied five vessels owned by Desgagnés, a Québec shipowner that has shown great vision in adopting LNG as a marine fuel and who also actively participated in the implementation of the bunkering system,” said Énergir.

The Desgagnés fleet includes cargo shipping, ferries and tankers with more LNG-powered vessels being added in the future.

Énergir noted that LNG as a maritime fuel was expanding in North. America to meet new emissions standards in ports.

“This solution is one of the concrete actions included in the Port of Québec’s Sustainable Development Action Plan, which aims to develop maritime trade by adopting environmentally friendly practices while favoring transitional energy,” added Énergir.

“Being one of the best sources of energy available to shipowners on the market, LNG is experiencing significant growth and is recognized elsewhere in the world, particularly in Europe,” stated the company.

Énergir is also present in the US where it generates electricity from renewable sources, while serving as the leading electricity distributor and the sole natural gas supplier in the northeast US state of Vermont.

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. 

Japan Petroleum Exploration Co., the oil and gas operator with liquefied natural gas import terminal and Japanese pipelines assets, has agreed to cut losses and sell its stake to Malaysia’s Petronas in the Canadian North Montney shale-gas joint venture.