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Woodfibre LNG has inked a contract for engineering, procurement, fabrication and construction (EPFC) with McDermott International.
The company made the announcement on Tuesday.
According to a release, this contract is “an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.”
By harvesting the gas resources in the Montney region to replace coal as a power source, especially in Asia, Woodfibre LNG could help reduce global emissions by 3.5 million tonnes of carbon dioxide equivalent per year. That’s comparable to removing 5 per cent of B.C.’s emissions every year.
Teaming up with McDermott, the Woodfibre facility could reduce carbon dioxide emissions by as much as 86 per cent per tonne of LNG produced, compared to other typical LNG facilities.
According to the release, Woodfibre LNG will be the cleanest liquefied natural gas export facility on earth. Using hydroelectricity for the main liquefaction process, a recycling system to boil off gas and additional transformers and switchgear, this would set a new standard for plant design.
“Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure,” said Christine Kennedy, president of Woodfibre LNG.
“Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. 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.”
On top of the EPFC contract, McDermott will also be in charge of commissioning and start-up services. Pre-installation is planned for early 2022, ramping up by September 2023 when major construction is expected to start.
According to the release, “major works will continue through to substantial completion, expected in Q3 2027.”
The Woodfibre LNG project is located about seven kilometres from Squamish. The facility will have capacity to store 250,000 cubic metres and produce 2.1 million tonnes of LNG per year, all using 100 per cent renewable hydroelectric technology.
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