Fluor Completes LNG Canada Phase 2

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)

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Summary

Fluor said it handed over control of the second phase of the LNG Canada facility after completing its work. LNG Canada currently is the only plant on North America's western coast that can deliver the super-cooled gas.

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Train 2 has 6.5 MTPA in Capacity

Engineering firm Fluor Corporation (Irving, Texas) announced Monday that it's completed the second liquefaction unit for the LNG Canada project in British Columbia, the only functioning North American facility of its kind.

James Ticer, Fluor's project director for LNG Canada, said Monday that project development was made with the environment and the interests of the aboriginal community in mind.

"This included economic sustainability by spending more than C$3.3 billion (US$2.4 billion) on goods and services contracted with indigenous businesses and joint ventures and more than C$550 million (US$360 million) with local area businesses," he said.

Train 2 would have a net capacity of 6.5 million metric tons per annum (MTPA) for exports of natural gas in the liquid form, bringing the total capacity to 14 MTPA.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more about LNG Canada--including capacities, investment values and necessary equipment--in a plant profile.

Nearly seven years in the making, LNG Canada, led by Shell plc (London, England), delivered its first batch of LNG in July, with Asian economies the target of most supplies. Data from the Canadian government show LNG Canada already has long-term contracts on its books with Chinese and Japanese customers.

LNG Canada is emblematic of Canada's push to expand its trade arteries outside of North America. U.S. President Donald Trump upended North American trade with an aggressive tariff policy, prompting Canada to look for new partnerships overseas.

It is the first facility in North America to ship LNG from the west coast, beating the Trump administration's push to advance the Alaska LNG facility, which would require an 800-mile pipeline through the Alaskan tundra in order to be completed.

By the Numbers

• 6.5 MTPA from Phase 2
• 14 MTPA total for LNG Canada
• 6 Bcf/d piped to the U.S. economy

LNG Part of Canadian Nation-Building

Carney aims to halve U.S. trade and has put federal revenue behind a handful of nation-building projects. In September, the government unveiled US$43 million in new investments, from SMRs to LNG.

Canada is the world's fifth-largest producer of natural gas. Production averaged about 19.0 billion cubic feet per day (Bcf/d) to July, the last full month for which complete provincial data are available. That's about 4% higher than during the same period last year.

Next up is the Woodfibre LNG facility near Vancouver, with a nameplate capacity of 2.1 MTPA through two production trains. Construction was slated to begin during the fourth quarter, with a completion date set for late in the decade.

Subscribers can read detailed reports on Woodfibre LNG in a project report.

Elsewhere, the Ksi Lisims export terminal for LNG, slated for Pearse Island off British Columbia, could become Canada's second-largest LNG facility and boast some of the lowest emissions globally. It would need the proposed 500-mile Prince Rupert gas transmission project and 60 miles of electricity supply lines.

Subscribers can learn from a detailed plant profile.

The Canadian economy is flirting with a recession, with unemployment running at 7.1% in September. The Bank of Canada said U.S. tariffs have created "structural damage" to the Canadian economy by reducing the nation's production capacity across most business sectors.

Canada is a net exporter of natural gas to the U.S. economy, with early December levels averaging about 6 Bcf/d.

Key Takeaways

• LNG Canada is already shipping product to Asia
• LNG is a priority for Canada's prime minister
• At least two more facilities are in the works

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).