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McDermott lands major contract for LNG facility in Squamish

DCN-JOC News Services
McDermott lands major contract for LNG facility in Squamish
WOODFIBRE LNG—A rendering shows the future site of Woodfibre LNG in Squamish, B.C. The project recently inked an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International.

SQUAMISH, B.C.—Woodfibre LNG has finalized an Engineering, Procurement, Fabrication and Construction (EPFC) contract with McDermott International. The contract will help the project move forward with detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.

Woodfibre LNG is aiming to be the cleanest liquefied natural gas export facility in the world by using a low-emission philosophy across every element of engineering and design. The facility will use hydroelectricity for the main liquefaction process and includes technology that enables liquefaction machinery to restart without flaring, a recycling system for “boil-off” gas, and additional transformers, switchgear and transmission lines, explains a release.

“Altogether, this results in the most groundbreaking technical achievement in the world of LNG, and sets a new standard for efficient plant design,” said the project team in the release. “This next-generation LNG production is in high demand.”

Currently Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 per cent of Woodfibre’s annual throughput has already been sold.

McDermott’s NetZero Modular LNG strategy has been fully utilized during the development of this advanced onshore gas processing and liquefaction facility with floating storage near Squamish. The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions.

“Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure,” said Christine Kennedy, president of Woodfibre LNG. “A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic reconciliation, this is the first arrangement of its type for an LNG facility.”

The contract dictates that McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG’s Impact Benefit Agreements with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation).

The project team estimates around 650 people will be working onsite during peak construction. The EPFC contract requires McDermott to follow Woodfibre LNG’s grant hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians.

“This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers,” said Samik Mukherjee, executive vice-president and chief operating officer of McDermott. “This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions.”

In addition to the EPFC work, McDermott will also be responsible for commissioning and startup 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. Major works will continue through to substantial completion, expected in Q3 2027.

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