Collaborate on designing and building the lowest emission LNG plant in the world
SINGAPORE – Media OutReach – November 26, 2021 – Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International. The EPFC contract is an important step in promoting detailed engineering and building planning work prior to Woodfibre LNG issuing a notice to proceed.
Sustainably produced natural gas is a necessary part of a successful global transition from heavy emission fuels to renewable energy. By harnessing the low-carbon gas resources of the British Columbia Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes of CO2e per year, equivalent to removing 5 percent of BC’s annual emissions from the atmosphere each year. McDermott and Woodfibre’s collaboration on front-end construction and plant design, relative to typical LNG facilities, will result in a ~ 86 percent reduction in carbon dioxide emissions per year. tons produced LNG.
Woodfibre LNG, a subsidiary of Pacific Energy Corporation (Canada) Limited, a member of the Singapore headquarters RGE group of resource-based companies founded by Sukanto Tanoto, will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy of across all elements of engineering and design. The plant will use hydroelectricity for the primary liquefaction process and includes advanced technology that allows liquefaction machinery to restart without burning, a boil-off gas recycling system and additional transformers, switchgear and transmission lines. All in all, this results in the most groundbreaking technical performance in the LNG world and sets a new standard for efficient plant design. This next generation of LNG production is in high demand. Woodfibre LNG has entered into two withdrawal agreements with BP, which means that over 70 percent of Woodfibre’s annual production has already been sold.
McDermott’s industry-leading NetZero Modular LNG strategy has been fully leveraged during the development of this advanced onshore liquefied gas treatment and densification plant near Squamish, British Columbia, Canada. The strategy provides several paths through design, execution and construction to reduce operational and project emissions.
“Our contract with McDermott is a positive step forward for this significant piece of clean energy infrastructure,” said Christine Kennedy, president of Woodfibre LNG. “Together we will build the lowest emission, most sustainable and innovative LNG export facility in the world. A special point of pride for us is that Squamish Nation acts as a full environmental regulator for this project. This serves as a unique example of economic reconciliation and is the first event of its kind for an LNG facility. ”
McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG’s Impact Benefit agreements with Sḵwx̱wú7mesh Úxwumixw (Squamish Nation). It is estimated that 650 people will work on the Woodfibre LNG site when construction is at its peak. The EPFC contract commits McDermott to Woodfibre LNG’s hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians. The common priority is to create a safe, inclusive and respectful workplace that brings benefits to the project’s original partners and community.
“This is yet another example of how we use our unique integrated capabilities to address challenges and create success for our clients,” said Samik Mukherjee, Executive Vice President and Chief Operating Officer of McDermott. “This award is a great opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions.”
In addition to EPFC work, McDermott will also be responsible for commissioning and start-up services. The pre-installation work for the project is planned for the beginning of 2022 and will gradually ramp up until September 2023, when major construction is targeted to begin. Major work will continue until a significant completion is expected in Q3 2027.
About wood fiber
The Woodfibre LNG project is located approximately 7 km west-southwest of Squamish, British Columbia (located midway between Vancouver and Whistler). The project is preparing to start preconstruction of a single train, liquefied natural gas (LNG) export facility at the former wood fiber pulp mill. The plant will have a storage capacity of 250,000 m3 and produce approximately 2.1 million tonnes of annual LNG using 100 percent renewable hydropower technology. Once operational, the plant will produce and export the cleanest, most technologically advanced LNG in the world. Woodfibre LNG is also the only industrial project in Canada, and possibly in the world, that has received an environmental approval from an indigenous people in the absence of a treaty. Woodfibre LNG Limited is a privately held Canadian company based in Vancouver and a subsidiary of Pacific Energy Corporation (Canada) Limited.
McDermott is a leading, fully integrated provider of engineering and design solutions to the energy industry. Our customers rely on our technology-driven approach, designed to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott’s innovative expertise and capabilities advance the next generation of global energy infrastructure – providing a brighter, more sustainable future for all of us. McDermott’s locally focused and globally integrated resources, which operate in over 54 countries, include more than 30,000 employees, a diversified fleet of specialized vessels for marine construction and manufacturing facilities around the world. To learn more, visit www.mcdermott.com.
McDermott warns that statements in this notice, which are forward-looking and provide information other than historical information, involve risks, unforeseen events and uncertainties that may affect McDermott’s actual operating results. These forward-looking statements include statements about the expected scope, execution and timing associated with the project mentioned in this press release. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can provide no assurance that these expectations will prove to have been correct. These statements are made using various underlying assumptions and are subject to several risks, events and uncertainties, including, but are not limited to: negative changes in the markets in which we operate or credit or capital markets; our inability to successfully execute contracts in arrears; changes in project design or schedules; the availability of qualified staff; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other changes and actions made by our customers and other business counterparties; changes in industry standards; actions by McDermott’s lenders and other creditors and adverse results in legal or other dispute resolution cases. If one or more of these risks materializes, or if the underlying assumptions turn out to be incorrect, the actual results may deviate significantly from those expected. This announcement reflects management’s views on the date. Except to the extent required by applicable law, McDermott assumes no obligation to update or revise any forward-looking statement.