Steelhead LNG announced it has signed an agreement with Höegh LNG, for that company and Bechtel to perform the pre-front end engineering and design (pre-FEED) work for its proposed Malahat LNG project.

The Malahat LNG project consists of floating natural gas liquefaction and export facilities located on the shoreline of Malahat Nation-owned land, south of Mill Bay on the east coast of Vancouver Island.

Lawrence Lewis with the Malahat Nation says they look forward to working with them as the proposed Project moves forward.

“The awarding of Malahat LNG’s pre-FEED engineering work to Höegh LNG and Bechtel, experienced providers of specialized services in the LNG sector, is a reflection of the importance Malahat Nation and Steelhead have placed on making sure the design of the Project is appropriate environmentally and technically for the Saanich Inlet.”

“This agreement is a reflection of our commitment to developing projects to the highest technical and environmental standards,” said Nigel Kuzemko, CEO, Steelhead LNG.

“Together, Höegh and Bechtel provide Malahat LNG with a unique combination of experience and expertise in maritime operations and the design and construction of LNG facilities.”

Höegh LNG owns and operates a fleet of nine vessels globally, five floating storage and regasification units (FSRUs) and four LNG carriers (LNGCs), with an additional three FSRUs under construction.

Bechtel is responsible for about 40 per cent of the world’s liquefaction capacity under construction today. They are also developing the first offshore floating LNG facility in the United States, off the coast of Louisiana.

“The Bechtel team will apply its extensive offshore and LNG technical and execution knowledge and experience and 40 years working in Canada to develop Malahat LNG,” said General Manager of Bechtel’s Offshore Business Line Joe Gebara.

The pre-FEED work will commence immediately and run through to Spring 2016.

This includes Proof of Concept studies for developing floating LNG production/storage/offloading facilities for up to 6 million tonnes per annum (mtpa) of LNG at the proposed site.

“We are pleased to enter into this agreement with Steelhead LNG for their proposed Malahat LNG project,” said Sveinung J. S. Støhle, President and CEO of Höegh LNG.

This announcement follows that on September 1st of a pre-construction agreement with Williams’ subsidiary Northwest Pipeline.