Fluor and JGC Secure LNG Canada Expansion Contract

News Summary

Fluor Corporation and JGC Corporation have been awarded a contract for the Front End Engineering and Design of the Phase 2 expansion of the LNG Canada facility in Kitimat, British Columbia. This crucial step is aimed at enhancing Canada’s liquefied natural gas export capabilities. The expansion will improve processing, storage, and shipping, contributing to a sustainable energy future by leveraging clean natural gas. With a strong history in this project, Fluor looks forward to advancing the next phase of construction alongside their partners.

Fluor Corporation and JGC Corporation Awarded Contract for LNG Canada Expansion

Fluor Corporation and JGC Corporation have secured a significant contract for the updating of the Front End Engineering and Design (FEED) for the upcoming Phase 2 expansion of the LNG Canada facility. This facility is situated on the traditional land of the Haisla Nation in Kitimat, British Columbia, and marks a vital step in enhancing Canada’s liquefied natural gas export capabilities.

The contract’s value remains undisclosed but has been acknowledged by Fluor, with the recognition taking place in the second quarter of 2025. This award comes on the heels of the commissioning of Phase 1, which successfully included the shipment of the first liquefied natural gas (LNG) export cargo from the facility.

Background on LNG Canada Facility

Located in an ice-free harbor on Canada’s west coast, the LNG Canada facility is the first of its kind in Canada and boasts an annual production capacity of up to 14 million tonnes of LNG. The facility is strategically positioned to take advantage of low-cost natural gas resources, providing a competitive advantage in the international market.

The operation of LNG Canada holds the potential to significantly contribute to the global efforts in reducing greenhouse gas (GHG) emissions. By transitioning from coal to natural gas, LNG Canada is expected to make a positive impact on global emissions over its 40-year license period.

Details of Phase 2 Expansion

The proposed Phase 2 expansion aims to enhance the facility’s processing, storage, and shipping capabilities. While the joint venture partners are currently considering various options for the expansion, no final investment decision has been reached yet. This phase is critical for the facility to maximize its efficiency and capacity, thereby reinforcing its position in the competitive LNG market.

Role of Fluor and JGC

As partners through the earlier phases of the project, the JGC Fluor Joint Venture has been actively engaged in the delivery of Phase 1 since 2018. They have provided comprehensive services that cover engineering, procurement, fabrication management, construction, and commissioning for the facility. With such a rich history of collaboration, Fluor Corporation is expressing its commitment to contribute proactively to the next stage of construction.

Exploring Future Possibilities

Beyond the immediate focus on the Phase 2 expansion, the LNG Canada joint venture encompasses major industry players including Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS. These partners are working in unison to explore all feasible options as they move towards definitive plans for expanding this pioneering facility.

Fluor’s Experience in Canada

Fluor Corporation has established a robust presence in Canada over the past 75 years, delivering a wide array of services in various sectors, including oil, gas, and infrastructure projects. This extensive experience qualifies them to effectively carry out the tasks associated with the expansion of LNG Canada, promising adherence to the highest industry standards.

As the LNG Canada facility progresses towards its next phase, stakeholders remain optimistic about the growth opportunities that lie ahead. The anticipated Phase 2 expansion is poised to not only address market demands but also contribute to a more sustainable energy future by leveraging clean natural gas as a viable alternative to more polluting energy sources.

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Additional Resources

• Euro Petrole: Fluor Joint Venture Awarded Contract
• Wikipedia: Liquefied Natural Gas
• Oil Price: LNG Canada Runs Into Technical Problems
• Google Search: LNG Canada
• RBN Energy: Likelihood Increasing for Sanctioning LNG Canada Phase 2
• Encyclopedia Britannica: LNG Canada
• Hart Energy: Petronas First Cargo LNG Canada Set to Sail to Japan
• Google News: LNG Canada Phase 2
• Financial Post: Canada’s First Shipment of LNG Delivered to South Korea
• Shell: LNG Canada – A New Frontier in Global Gas Supply