Fluor to book $8.4 billion following LNG Canada FID

Image courtesy of LNG Canada

US engineering giant Fluor is to book $8.4 billion from its share in the LNG Canada contract following the positive final investment decision announced by the Shell-led project on Tuesday.

Fluor’s joint venture with Japan’s JGC Corporation has been previously selected to provide the engineering, procurement, fabrication and construction on the C$40 billion ($31 billion) LNG export project. The award was pending on a positive final investment decision by LNG Canada.

“Fluor will book its $8.4 billion share of the about $14 billion contract value in the fourth quarter of 2018,” the company said in a statement.

The project scope will initially consist of two liquefaction units for a total of about 14 million tons per year of LNG. LNG Canada has the option to expand to four trains in the future.

According to Fluor, more than 4,500 workers will be employed at the peak of construction on the LNG export project.

The joint venture will focus on hiring locally and then throughout British Columbia and Canada, it said.

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

LNG Canada is a joint venture comprised of Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%) and Kogas (5%).

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