With current oil prices in a slump and LNG pricing likely to remain squeezed for the next few months, further pressure has been heaped on Canadian LNG project investors to move decisively towards Final Investment Decision (FID), or risk losing out completely to their United States rivals.
British Columbia in particular has driven an ambitious and upbeat message, but before any project reaches FID a formidable array of investors, stakeholders and lenders will need convincing that any such projects are economically robust and rewarding.
Ultimately, delivering competitively-priced projects will come down to a collaboration of will between the engineering, procurement and construction (EPC) firms and the operators who commission these teams to deliver. Recent months have witnessed many key Canadian LNG front-end engineering and design (FEED) contracts being awarded to the world’s leading EPCs, with a great volume of subsidiary work (such as construction management and project execution) being awarded on both the west and the east coasts of the country, as urgency to move projects forward ramps up.
Many leading firms including Chicago Bridge & Iron (CB&I), Fluor, Foster Wheeler, JGC, Linde and Saipem have won major contract awards and other such as KBR, Samsung and Technip await key bid decisions for lead roles in Canadian project delivery.
Both leading EPC firms and companies interested in becoming supply chain vendors on the construction of these projects are helping to drive awareness of innovation and advancement in LNG technology at the Canada LNG Export Conference & Exhibition, where the inaugural ‘Centre of Operational and Technical Excellence’ will be dedicated to delivering knowledge, education and awareness of technological innovations.
The ‘Centre of Operational and Technical Excellence’ will provide a platform for global industry experts to showcase latest developments in: LNG Project Management Lifecycle, Pipeline Infrastructure and LNG & Gas Carrier operations and technology, to an audience of Canadian LNG proponents, developers and industry stakeholders.