McDermott Nets EPFC Deal with Woodfibre LNG

McDermott Nets EPFC Deal with Woodfibre LNG
Woodfibre LNG will be the cleanest LNG export facility in the world.

McDermott International has announced that it has signed an engineering, procurement, fabrication and construction (EPFC) deal with Woodfibre LNG.

The Houston-based company, which noted that it will also be responsible for commissioning and start-up services, revealed that pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023, when major construction is targeted to begin. Major works will continue through to substantial completion, which is expected in the third quarter of 2027.

McDermott outlined that it will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG’s Impact Benefit Agreements with the Squamish Nation. It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction.

The value of the contract was not disclosed by McDermott. The company noted that the EPFC deal is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.

Woodfibre LNG will be the cleanest LNG export facility in the world, according to the project’s website, which outlines that the development will source its natural gas from Pacific Canbriam Energy, a Canadian company with operations in northeastern British Columbia. Woodfibre LNG will be one of the few hydroelectric powered LNG facilities in the world, reducing greenhouse gas emissions by approximately 80 percent, its site states. The project will be shipping Canadian LNG to Asia where demand for natural gas is expected to increase 3.6 percent each year to 2035.

“This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers,” Samik Mukherjee, the executive vice president and chief operating officer of McDermott, said in a company statement.

“This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions,” he added in the statement.

Commenting on the deal, Christine Kennedy, the president of Woodfibre LNG, said, “our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure”.

“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,” Kennedy added in the statement.

“Serving as a unique example of economic reconciliation, this is the first arrangement of its type for an LNG facility,” Kennedy continued.

The Woodfibre LNG deal is one of several deals announced by McDermott this month. Last week, the company revealed that it had won an engineering, procurement and construction project after successfully completing FEED services for a booster compression module for the INPEX-operated Ichthys LNG development. During the same week, McDermott and SBM Offshore established a special purpose company to perform FEED for an FPSO vessel under contracts for the Yellowtail development project and on November 3, the company signed a memorandum of understanding with Shell to collaborate on decarbonizing construction. 

To contact the author, email andreas.exarheas@rigzone.com


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