Fluor joint venture secures $14B contract to build LNG Canada facility

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Fluor Corp. and JGC Corp. will design and build a new processing plant on the coast of Kitimat, British Columbia. The facility will liquify natural gas for overseas export. Photo provided by Fluor Corp.

A joint venture between Texas-based engineering and construction firm Fluor Corp., which has offices in Greenville, and JGC Corp., a global engineering firm based in Japan, has been awarded a $14 billion contract from LNG Canada to design and build its liquefied natural gas export facility in British Columbia.

LNG Canada is a joint venture by Shell, Petronas, PetroChina, Mitsubishi, and KOGAS. The companies plan to construct a pipeline that will carry natural gas from northeastern British Columbia to a new processing plant on the coast of Kitimat, where the gas will be liquified for overseas export.

“Fluor remains focused on delivering capital efficiency for our clients and we are excited that our joint venture team’s innovative solutions have helped to enable LNG Canada to achieve final investment decision,” said David Seaton, Fluor’s chairman and chief executive officer, in a statement. “We are committed to closely collaborating with LNG Canada and the local community to deliver this project safely and sustainably and to meet client needs.”

The $40 billion project will initially consist of two liquefaction units that will produce an estimated 14 million tons of liquified natural gas per year, according to a news release. LNG Canada has the option to expand to four units in the future.

Fluor and JGC will begin site activities this year, with the first delivery of LNG expected around the middle of the next decade, according to the release. 

More than 4,500 workers will be employed at the peak of construction. The companies will focus on hiring locally and then throughout British Columbia and Canada.

Fluor will book its $8.4 billion share of the contract in the fourth quarter of 2018. 

“Fluor delivered its first project in Canada in the 1940s, which was a refinery in British Columbia,” said Jim Brittain, group president of Fluor’s Energy & Chemicals business, in a statement. “Since then, Fluor has been a part of some of Canada’s most-significant capital projects. We look forward to building LNG Canada’s facility and bringing lasting economic benefits to the local community and British Columbia.”

For more information, visit www.fluor.com.

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