LNG Canada revealed that it has so far approved contracts worth more than C$937m ($702.8m) to local Canadian enterprises for its proposed LNG export project near Kitimat, British Columbia.


Image: LNG Canada is developing an LNG export project near Kitimat. Photo: courtesy of Carlo San/Freeimages.com.

Among the contract winners of the LNG export project are local First Nations businesses, which have been given C$175m ($131.2m) worth orders.

LNG Canada said that with the addition of contracts given to local Kitimat area businesses, including First Nations businesses, the total moves up to C$330m ($247.5m) and to C$530m ($397.5m) after adding British Columbia businesses outside the local area.

The proposed LNG export facility will initially have two LNG processing units, with each having a production capacity of at least 6.5 million tons per annum (mtpa) of LNG. The project has been designed to facilitate four more units/trains in the future.

LNG Canada claims that the project’s economic benefits go far beyond British Columbia, with almost C$400m ($300m) in contracts and subcontracts awarded to businesses across Canada. The company said that as the project moves ahead, it expects to award more contracts to benefit Canadian communities.

LNG Canada external relations director Susannah Pierce said: “What these contracts and subcontracts represent, is tremendous opportunity for individuals to find employment on the LNG Canada project through our contractors and subcontractors.

“For First Nations communities, it is delivering on the opportunities we have committed to that will assist the Nations address issues of poverty, unemployment and skills development. For local communities, it is the opportunity for young people to find employment that allows them to remain living in the North.”

LNG Canada is a joint venture made up of Shell Canada Energy with 50% stake, and affiliates of PetroChina with 20% interest, Korea Gas with 15% stake and Mitsubishi with 15% stake.

In April 2018, the joint venture awarded an engineering, procurement and construction contract for the LNG export facility to Fluor and JGC.

It is estimated that nearly 10,000 Canadian workers will be involved in the construction of the LNG terminal and the Coastal GasLink pipeline project, which will supply it with natural gas from northeastern British Columbia.