​Steelhead LNG initiates competition for Vancouver Island project engineering and design

Representatives from Steelhead LNG and Huu-ay-aht First Nation. Image: Steelhead LNG

Four engineering, procurement and construction (EPC) contractors have been shortlisted in the first phase of a competition toward selection to conduct front-end engineering and design for a proposed LNG project on Vancouver Island.

The project, called Kwispaa LNG, is being developed by a “co-management relationship” between Steelhead LNG and Huu-ay-aht First Nations. It has been licensed to export to export up to 24 million tonnes per annum of LNG for 25 years. Initial production of 12 mtpa is expected to begin in 2024.

Invitations to tender will be issued in the second quarter to a joint venture of Black & Veatch, Samsung Heavy Industries and PCL Industrial Management Inc., as well as to a joint venture of CB&I and Offshore Oil Engineering Co., Ltd., to KBR and to TechnipFMC.

From there, two successful bidders will be selected to carryout FEED, starting in Q3 2018.

Hyundai Heavy Industries has also been provisionally nominated as the hull fabrication contractor for EPC of two At-Shore LNG hulls—for a total value of approximately US$500 million—to support the initial production capacity of the project, Steelhead LNG vice-president Alex Brigden noted in a statement.

In December 2017 Steelhead LNG and the Malahat Nation announced they would not proceed with the proposed Malahat LNG project in the Saanich Inlet.